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New Credit Card Law!
With the new credit card law coming into effect in 2026, millions of Brazilians will gain a powerful tool against uncontrolled debt.
This regulation, known as Law No. 14,690/2023, focuses on curbing the exponential growth of revolving credit debt, promoting greater transparency and financial responsibility for both consumers and banking institutions.
Keep reading!
What is the new credit card law?
The new credit card law, Law No. 14,690/2023, represents a significant reform of the revolving credit system in Brazil, sanctioned in July 2024 and with expanded application starting in January 2026.
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This legislation establishes strict limits on the accumulation of interest and charges, preventing debts from multiplying indefinitely.
Furthermore, it covers all card issuers, including traditional banks and fintechs, ensuring uniformity in the market.
However, the core of the law lies in protecting the consumer by requiring greater transparency in installment payment proposals.
For example, financial institutions must now present clear options with defined deadlines and explicit total costs.
Consequently, this empowers users to make informed decisions, reducing the risk of falling into hidden financial traps.
Furthermore, the new credit card law integrates into a broader regulatory ecosystem, aligned with Central Bank initiatives to combat over-indebtedness.
Therefore, it is not an isolated case, but part of an ongoing effort to balance access to credit with the economic sustainability of Brazilian families.
How does the debt limit work on revolving credit?
The revolving credit limit operates through a fixed ceiling: the total amount due, including interest, fines, and other charges, cannot exceed twice the original invoice amount.
Thus, if an invoice of R$ 1,000 is paid partially or late, the maximum permitted debt is R$ 2,000, regardless of the time elapsed.
Furthermore, after 30 days in revolving credit, banks are required to offer installment payment options, preventing the perpetuation of the vicious cycle.
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However, this mechanism applies to both revolving credit and subsequent installments, ensuring that renegotiation does not generate a new, larger debt.
For example, proposals should include formal records, allowing the consumer to review and challenge terms if necessary.
Consequently, this fosters a more balanced relationship between the client and the institution.
Furthermore, the new credit card law encourages the adoption of preventive practices, such as automatic alerts about revolving credit risks.
Therefore, the system operates not in a punitive way, but in an educational one, helping users avoid the initial accumulation of debt through digital tools integrated into banking applications.
| Aspect | Description | Practical Impact |
|---|---|---|
| Debt Ceiling | Maximum of 100% on the original value | Avoid financial "snowball effect". |
| Revolving Credit Deadline | Maximum of 30 days | Forces transition to installment plan. |
| Transparency | Proposals with a detailed total cost. | It facilitates informed decisions. |
What are the advantages for consumers?
One of the main advantages of the new credit card law is the reduction of financial stress by limiting the disproportionate growth of debt.
Thus, consumers facing unforeseen events, such as job loss, gain a safety net, knowing that their debt will not explode.
Furthermore, this encourages healthier consumption habits, promoting the full payment of bills.
However, another advantage lies in the greater accessibility to responsible credit.
For example, with controlled interest rates, average rates can stabilize, making the card a viable tool for emergencies without the fear of chronic debt.
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Consequently, low-income families, who historically suffer more from revolving credit, see an opportunity for better budget planning.
Furthermore, the law strengthens consumers' bargaining power by requiring formal records of agreements. Therefore, in cases of dispute, there is concrete evidence to resort to agencies such as Procon.
It's not surprising to ask: why did it take us so long to implement a measure that levels the playing field between banks and ordinary citizens?
Why was this law created?
The new credit card law was created to combat over-indebtedness, a problem that affects millions of Brazilians amid high interest rates.
According to recent data, in November 2025, the average interest rate for individuals on unsecured credit reached 59.4% per year, contributing to a vicious cycle of debt.
Thus, legislation emerges as a response to social and economic pressures, aiming to stabilize the family economy.
However, the context includes the expansion of digital credit, which has facilitated access, but also abuses.
For example, traditional revolving credit allowed small debts to grow into unpayable amounts due to compound interest.
Consequently, the government intervened to protect vulnerable people, aligning itself with financial inclusion policies.
Furthermore, similarly to an emergency brake on an out-of-control car, this law halts the uncontrolled acceleration of debt, allowing consumers to regain control.
Therefore, its creation reflects a strategic vision: a country with healthy personal finances drives collective economic growth, reducing default rates and encouraging conscious consumption.
| Motivation | Explanation | Expected Effect |
|---|---|---|
| Combating Over-Indebtedness | Response to high interest rates | Reducing the number of indebted families. |
| Transparency in the Market | Bank regulation | Greater confidence in the financial system |
| Economic Inclusion | Protection for low-income families | Encouraging responsible consumption |
What examples illustrate the application of the law?
One striking example involves Carla, a 35-year-old self-employed teacher who, in February 2026, was late in paying an R$ 800 bill due to an unforeseen medical issue.
Under the new credit card law, after 30 days in revolving credit, the bank offered installment payments with a total cost limited to R$ 1,600.
Therefore, Carla opted for 12 fixed installments, preventing the debt from growing to R$ 2,500 as it would have happened previously.
However, this case highlights transparency: the bank's app displayed clear simulations, allowing her to compare options.
Furthermore, with the formal registration, Carla was able to consult the agreement later, adjusting her monthly budget accordingly.
Consequently, she paid off the debt in six months, preserving her financial health.
Another example is that of João, a 42-year-old entrepreneur who accumulated R$ 1,500 in revolving debt from online purchases.
With the law in effect, the total was capped at R$ 3,000, forcing the bank to propose immediate renegotiation.
Therefore, João paid in 18 installments with controlled interest rates, using the credit limit as motivation to prioritize payments and invest in his business.
Furthermore, these examples show how the law transforms challenges into learning opportunities.
Thus, instead of perpetuating the cycle, it encourages proactive negotiations, benefiting both individuals and the economy.
New Credit Card Law: Frequently Asked Questions
| Question | Response |
|---|---|
| Does the new credit card law affect fintech cards? | Yes, it applies to all financial institutions, including digital ones, ensuring uniformity. |
| What happens if the debt already more than doubles before 2026? | Old debts can be renegotiated under the new rules, but check with your bank for details. |
| How do banks offer installment payment plans? | They should be clear, with deadlines and total costs explicitly stated, preferably via app or email. |
| Does the law reduce revolving credit interest rates? | Indirectly, by limiting overall growth, but rates still vary by institution. |
| Can I dispute an installment payment proposal? | Yes, with formal registration, you have evidence to appeal to agencies like Procon. |
In short, the new credit card law in 2026 is not just a restriction, but a step towards fairer and more sustainable finance.
By limiting revolving debt, it empowers consumers and balances the market.
For more details, check the official page of the Central Bank Regarding regulations, explore analyses in Febraban websiteor read updates at Federal Government portal.
