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Post by livinginmedellin on Jul 2, 2016 9:38:52 GMT -5
The credit card usury rate in Colombia is now the highest in 8 years. This is the highest interest rate permitted. On Friday the rate usury hit the highest in the past eight years, 32.01% annual effective for consumer credit. This is the highest in 8 years - in March 2008, this indicator reached 34%, and since then had not reached a similar level. According to Superfinanciera, to May 31, the annual effective rate for credit cards was the highest at Banco Popular at 30.73%. In the second place was Giros & Finanzas, with 30.60%; in the third, Tuya, with 30.56%; in fourth place was BBVA with 30.54%, in fifth place Servicios Financieros, with 30.45%. Sixth was the Bank of Bogotá, with 30.30%, and the seventh was Banco Falabella, with 30.26%. See (in Spanish): www.elcolombiano.com/negocios/economia/usuarios-de-tarjetas-de-credito-afectados-por-tasa-de-usura-FL4490698So the annual interest rate is 30%+ for credit cards in Colombia. This compares to an average in the US of 13.7% in Q4 last year in the US last year according to the Federal Reserve.
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Post by Deleted on Jul 2, 2016 12:22:41 GMT -5
Colombian crdit cards are horribly draconian. My wife has a Colpatria credit card, but rarely uses it. And when she does use it, it is for promociones and giveaways... and she lets me know about it. I mark the date on the calendar with the amount, and make sure the bill is paid in full at the bank within the week. One time, a monthly statement with a 200 peso unpaid balance failed to arrive at the house in a timely manner. Colpatria tried to collect a 49,000 peso late fee on the 200 peso balance. We went to the bank and squared things away. The 200 pesos was paid and the oppressive late fee was waived after my wife threatened to close the account.
The banks here sugarcoat their credit products with super discounts, promotional giveaways and long-term quota payments. Many materialistic Colombianos are attracted to these offers like a moth to flame without regard for the financial consequences down the road.
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