On June 3rd, the Committee on Consumers Defense approved a proposal equating the credit-card administrators to financial institutions, subjecting them to the supervision of Central Bank. That proposal is part of a substitution bill authored by Deputy Celso Russomanno (PP-SP), to the Complementary Bill (PLP) 106/07, from the Committee on Participative Legislation (CLP).

In his substitution bill, Russomano broadened the scope of that Project. According to him, since new technologies can replace cards, the rapporteur submitted all companies linked to any “payment instruments” (the physical or electronic means allowing money transference) to the Central Bank.

That rule will prevail, not only to credit-card administrators (or of other payment means), themselves, but also to other companies actuating in the sector, such as the responsible ones for the accrediting of businesses accepting those credit cards.

Against abuses
According to Celso Russomanno, the total freedom currently given to administrators, “with the lack of an adequate government’s supervision”, has been exposing consumers to abuses, such as exaggerated interest rates, the lack of credit-card safety and increases in credit limits without the clients’ request.

“Therefore, the submission of those companies to a strong autarchy, such as the Central Bank, is convenient and deserves the Congress’ approval”, stressed that deputy. He called for the rejection of PLO 112/07, attached, which equals societies for trade fomentation to financial institutions. According to Russomano, in this case, the change would not be justifiable, since the clients of those institutions are corporations and therefore there is no consume relation.

Procedure
The bill, which had been approved by the Committee on Finances and Taxation, still needs to be reviewed by the Committee on the Constitution and Justice and Citizenship (CCJ). It is also subject to the House Floor’s analysis, and was deemed priority regime.

From the newsroom/JPJ
Translation - Positive Idiomas Ltda