Brazil Targets Lenders Charging Up to 957% a Year
Brazil's consumer watchdog Senacon opened an investigation into three lenders for charging interest rates as high as 957% per year on unsecured personal loans. The probe will determine if the rates breach the Consumer Defense Code's ban on manifestly excessive advantage. It coincides with the government's launch of cheaper‑credit programs aimed at curbing predatory lending.
- ▪Senacon announced the investigation on June 29 targeting three lenders charging abusive interest rates.
- ▪Valor S/A charged 21.72% per month (957.7% annually), Cobuccio 956.6%, and Crefisa 871.4%.
- ▪A 1,000‑real loan at 20% monthly would swell to over 9,500 reais after one year.
- ▪All the rates apply to unsecured personal loans, the costliest mainstream credit in Brazil.
- ▪The watchdog is assessing whether the rates violate the Consumer Defense Code's prohibition on manifestly excessive advantage.
Opening excerpt (first ~120 words) tap to expand
Brazil Politics and Society Brazil Targets Lenders Charging Up to 957% a Year By Arkady Petrov · June 30, 2026 · 4 min read Daily Brief The morning intel from across Latin America. Free. Subscribe By subscribing you agree to our privacy policy. We never share your email. Economy Key Facts —The probe. Brazil’s consumer watchdog, Senacon, opened an investigation on June 29 into three lenders charging abusive interest. —The rates. Valor S/A charged 21.72% a month, or 957.7% a year; Cobuccio 956.6%; Crefisa 871.4%. —The math. A 1,000-real ($193) debt at twenty percent a month swells past 9,500 reais ($1,834) within a year. —The product. All three rates were on unsecured personal loans, the costliest mainstream credit in Brazil. —The test.
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