Stopping processing costs for loan agreements takes effect today

The halt to processing costs for loan agreements comes into effect this Wednesday, about two months after Parliament approved the regulation defining the measure.

We are talking about law 24/2023, which approves consumer protection standards in the field of financial services.

The diploma, published in the Diário da República at the end of May, states that “creditors [bancos] cannot charge a loan processing fee in connection with loan agreements […] from the date of entry into force of this Law.

In 2020, the Assembly of the Republic has already given the green light to a ban on charging processing costs for contracts concluded from January next year, with the exception of older contracts.

Already in April 2023, he approved a new charter defining the measure, which is now coming into force.

On May 30 this year, new limits on bank fees began to apply, following the publication of a law prohibiting, for example, banks from charging fees for photocopies of documents or for changing account holders in the event of death.

The mentioned law also limits the charging of fees for changing the owner of demand deposit accounts in the event of a divorce. In the process of determining heirs in connection with the death of the account holder, banks cannot charge a commission higher than 10% of the Social Assistance Index (IAS).

Banks can also no longer charge a fee for photocopies of documents of the institution relating to the client, the issuance of duplicate bank statements or other documents. In the case of depositing coins, they cannot charge a fee of more than 2% of the cost of the operation.

In the event of a default in the same month on installment payments under multiple loan agreements backed by the same guarantee, banks may only charge a fee for the default that occurs first.