April 17, 2010
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News: Brazilian President Makes Demands Of Lenders
Brazil residents are hounding government officials to take action against the credit card industry who have hammered Brazilians with deceptive and unfair practices. Other countries have already begun to take action against lenders by implementing new legislation that prohibits lenders from imposing high interest rates and fees on an already burdened economy. Brazilian lawmakers have listened and are demanding that credit card companies produce terms and conditions that can be more easily understood by Brazilian customers. According to Brazil's President, Luiz Inacio Lula Da Silva some credit card companies have imposed fees that are unfair and lack transparency.
A year ago, Americans listened as its President, Barack Obama also told U.S. lawmakers that credit card companies were abusing its citizens with unjustified and abusive practices. He demanded lawmakers develop credit card reform legislation that prevents the financial industry from continuing to harm Americans. Brazil's President has also summoned its nation's banks and merchants to inform them that their time too of abusing Brazilians is also over. He is demanding that the financial industry develop a set of standards that will provide more protection and greater transparency to consumers. If the banks fail to do so, they can expect lawmakers to pass a very tough law.
Brazilian residents have been complaining about the exorbitant high cost of credit as interest rates and fees grow to uncontrollable heights. President Lula Da Silva does not want to see Brazilian citizen's become buried in debt and wants protection in place before it gets out of hand. It will also help to facilitate the Brazilian initiative which is to step up competition in the credit card industry. Allowing these abusive practices to continue will only serve to hurt the industry as consumers begin to pull away from card use. Currently, the country has over 500 million cardholders within a $220 billion industry.