What is a basic bank account?
Access to the credit intermediary activity
List of authorised credit intermediaries
How to protect yourself from online fraud?
Know your rights when making payments in Europe.
Do you know what the gross domestic product is? What about inflation? (only in Portuguese)
Key tips to protect yourself when choosing online or mobile banking services.
Bank customers go into arrears when they do not pay the instalment of the loan on the stipulated date.
In this case, credit institutions may require customers to pay default interest and other charges. These charges are limited to a single fee for the recovery of outstanding amounts and expenses incurred after going into arrears, provided that they are duly documented.
As a rule, loans are repaid by bank customers by way of constant monthly instalments.
These instalments are composed of part principal and part interest. The interest component paid by bank customers corresponds to the compensatory interest that the credit institution receives for making the funds available. The compensatory interest rate is thus the annual nominal interest rate of the loan.
In the event of arrears, credit institutions may charge default interest. This default interest results from the application of a maximum annual surcharge of 3%, which is added to the compensatory interest rate.
Default interest rate = Compensatory interest rate + 3%
Default interest is calculated on a daily basis on the amount of the instalment due, for as long as non-compliance remains.
Default interest = Amount of instalment due x (default interest /360) x No. of days in overdue
The capitalisation of default interest is not permitted, except in the case of debt restructuring or loan consolidation.
The possibility of capitalisation must be agreed in writing between the credit institution and the bank customer. If there is a written agreement, the credit institution may perform a capitalisation operation without notifying the customer.
The capitalisation of compensatory interest that integrates past due instalments may only occur once in relation to each instalment.
This means that new interest may be applied on the compensatory interest of the past due instalment.
Credit institutions are generally prohibited from charging fees based on the default of bank customers.
However, credit institutions may require payment of a fee for the recovery of amounts owed.
The debt recovery fee may be charged only once for each instalment due, and it may not exceed 4% of the instalment amount, with a minimum value of €12 and a maximum value of €150.
If the past due instalment exceeds €50,000, the fee may not be above 0.5% of its amount.
Institutions may not charge more than one fee per month to recover outstanding amounts, in cases involving instalments of credit agreements of the same bank customer and secured by the same guarantee.
Credit institutions may also require the bank customer to pay the expenses owed to third parties, on behalf of the customer, after the entry he/she entered into arrears, upon presentation of supporting documents.
The bank customer failed to pay the monthly instalment in the amount of €350 on the contractual date, entering into arrears. In addition to the instalment due, the credit institution may require default interest corresponding to the nominal annual percentage rate (4%) plus a surcharge of 3%.
If the bank customer pays the amount overdue in 20 days, he/she must pay the monthly instalment amount plus the corresponding default interest. Additionally, the credit institution may charge a fee corresponding to 4% of the instalment amount.
Total amount payable = monthly instalment + default interest (20 days) + fee
Total amount payable = €350 + (€350 x 0.07/360 x 20) + (€350 x 0.04)
= €350 + €1.36€ + €14 = €365.36
Decree-Law No 58/2013 (in Portuguese only)
Decree-Law No 3/2010 (in Portuguese only)