80.4% of Brazilian households were in debt, the highest share on record, according to data from CNC, Brazil's national confederation of commerce and services, reported by G1 in April. Picture a street with ten houses: eight would be juggling bills beyond their budget, from credit cards to installment plans. That backdrop is what pushed Brazil's central bank, the Banco Central, to prepare rules against abuses in how lenders sell digital credit, according to Folha de S.Paulo.
The rules are still being drafted and should be released in the coming months, people close to the talks told Folha. The central bank declined to comment when contacted. One target is high-value pre-approved loan offers, displayed in bright colors on the home screen of banking apps.
What it means: a pre-approved loan is an offer the bank has already evaluated before the customer asks for anything. It is not money in your account; it is an invitation that can become debt in a few taps, with interest and fees that are not always read. The central bank is weighing what limits and conditions such offers should follow.
The package is also expected to create specific protections for vulnerable consumers, according to people familiar with the discussions. The definition goes beyond low income: it includes users with little digital or financial familiarity, who are more likely to accept offers without understanding the interest and fee clauses.
App design is another concern. Central bank technicians found that the flow of screens can push users into mistakes through speed or aggressive layout, even when the bank claims to comply with transparency rules. Another distortion flagged is advertising for betting platforms inside banking apps, seen as inconsistent because current rules require banks to look after customers' financial health.
A crackdown already under way
The new rules add to measures on risk recognition and capital requirements announced last week for credit cards and non-payroll personal loans, the most expensive credit lines for customers. According to Folha, the central bank is considering changes to the FPR (Risk Weight Factor), the multiplier that determines how much of a bank's own capital must be set aside per real lent. It works like a bank having to set aside more of its own money for every loan, which tends to make credit costlier or reduce how much is offered.
Minutes of the Comef, the central bank's Financial Stability Committee, released on September 2, said specific measures for the credit market are being prepared, without dates. A day earlier, the central bank's supervision director, Ailton de Aquino, said the measures would come soon to fight household debt and called for a "macroprudential" view, "especially in the most expensive lines".