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Central Bank Targets Ban on 'Rotativação' in Pix Installments as November Rules Near

Forthcoming regulation will require clear disclosure of costs, interest, penalties to protect users.

Overview

  • Banco Central official Breno Lobo said standardized rules for Pix Parcelado are expected in November after earlier delays.
  • The draft framework under discussion would bar offering new Pix installment credit to delinquent borrowers to prevent credit stacking similar to card revolving debt.
  • Banks will be allowed to charge additional interest and fines if customers default, with the regulation defining how those charges apply and must be presented.
  • Apps will be required to show the interest rate, each installment amount, the total cost of the operation, and the late-payment penalty before the user confirms.
  • Merchants would receive the full payment upfront, while consumer groups and justice ministry officials warn the credit-like feature risks driving overindebtedness.