Watch out for your credit card: the usury rate for May rose to 28.17%
The Financial Superintendence reported that the usury rate that will govern from this Friday, May 1st. The figure, which serves as a cap for credit card interest, stood at 28.17% for the fifth month of the year, i.e., 1.41 percentage points above the level in force in April (26.76%).
TL;DR
- The usury rate for May 2020 in Colombia is set at 28.17%, an increase from April's 26.76%.
- This rate acts as a ceiling for credit card interest.
- Banco Unión and Coopcentral have the highest and lowest credit card interest rates, respectively, among surveyed banks.
- Analysts link the rising usury rate to overall credit conditions and Central Bank interest rate adjustments.
- Experts recommend responsible credit card usage and caution against excessive debt due to increasing interest rates.