End of processing costs for credit agreements comes into effect today

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The end of processing costs for credit contracts comes into force today, about two months after parliament approved the law that determines this measure.

At issue is law 24/2023, which approves standards for consumer protection in financial services.

The law, published in Diário da República at the end of May, determined that “lenders [banks] may not charge a credit processing fee on credit agreements […] as from the entry into force of this law.

The Portuguese Parliament had already given the “green light” in 2020 to ban the collection of processing costs for contracts entered into as of January of the following year, leaving out older contracts.

Already in April 2023, a new law was passed, determining the measure that now comes into effect.

On May 30 of this year, the new limits on bank fees began to apply, after the law was published that prevents, for example, banks from charging for photocopying documents or for changing an account holder in the event of death.

The law in question also limits the charging of commissions on changes in the ownership of demand deposit accounts in the event of divorce. Banks cannot charge a commission higher than 10% of the Social Support Index (IAS) in processes to certify heirs due to the death of an account holder.

Banks may no longer charge any commissions for photocopying documents from the institution that concern the client, or for issuing duplicates of bank statements or other documents. In the case of depositing coins, they may not charge commissions exceeding 2% of the value of the operation.

When there is a default, in the same month, on the payment of the installments of several credit agreements that are supported by the same guarantee, the banks can only charge the commission associated with the default that occurs first.

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