They propose modifying the Monetary Law to reduce credit card interest rates by 30%

The deputy for the San Pedro de Macorís province, Alcibíades Tavárez De La Cruz, formally presented to the Chamber of Deputies a bill that seeks to amend Law No. 183-02, Monetary and Financial, with the objective of establishing a special protection regime for users of credit cards and putting an end to charges considered disproportionate by the banking sector.

In justifying his proposal, the legislator described it as “inconceivable” that while the average active interest rate for loans in the national banking sector fluctuates between 14% and 15% per year, credit cards are subject to a rate close to 60% per year, which represents practically four times the cost of average commercial or personal financing.

Tavárez also denounced the distortions in current billing methods, pointing out that when a citizen makes a purchase and pays almost the entire amount—citing as an example a customer who consumes RD$ 20,000 and pays RD$ 19,999—financial institutions apply interest on the total amount originally consumed and not on the remaining balance. A similar situation occurs when a cardholder pays the full debt just one day late, receiving the full charge of interest on the total.

The project seeks to alleviate credit card user debt

The proposal prevents financial entities from creating or increasing commissions, penalties, or mandatory insurance intended to compensate for or neutralize the 30% reduction in credit card interest rates.

To ensure transparency, account statements must clearly detail the previous balance, payments received, amounts applied to the principal, the resulting outstanding balance, and the interest rate used.

The initiative also provides for the immediate refund or credit of interest charged in excess due to non-compliance with these provisions, without prejudice to the corresponding administrative sanctions.

Regarding its implementation, the Monetary Board would have 120 days, from the enactment of the law, to issue the methodological regulations. Subsequently, issuing banks would have a maximum period of 90 days to adapt their computer systems and billing formats.

This project seeks to establish limits and controls to prevent interest and other charges from continuing to increase the economic burden on consumers.