Banks charge up to 104.4% a year on credit cards

Dominican credit card users are being charged average interest rates of between 48% and 104% annually.

The alleged "competitive" monthly rate offered by financial institutions of 6.85%, is in reality equivalent to 82.2% annually, while a monthly rate of 8.7% stacks up to a staggering 104.4%!

This information has come to light after a report issued by the Dominican Bank Superintendent (SB), which also showed that credit card issuing fees are between  RD $ 300 and RD $ 800.

It also notes that some banks do not charge for issuing a card, but do charge for a replacement, usually between RD $ 100 and RD $ 400.

Overdue payment charges (los cargos por moras), the report said, are between 12% and 96%, while the annualized overdraft fees are between 12% and 70%. This detailed information offers financial services users the opportunity to compare banks to see which ones offer better rates and conditions.

The Bank Superintendent, Haivanjoe NG Cortiñas, said they have now listed on the agency's website (www.sb.gob.do) the various interest rates and fees charged by financial entities for the use of credit cards.

This publication, he said, is done within the framework of the Program of Institutional Strengthening and supporting the initiative of President Leonel Fernández to declare 2011 as "Year of transparency and institutional strengthening" and it seeks to promote greater transparency, discipline and competitiveness in the Dominican financial system.

This published information for each bank contains the annualized interest rates for card financing, interest on overdue fees for overdrafts and cash advances, fees for renewal, issuance, replacement, and insurance loss. This information is segregated by brand, currency and credit card products.

Financial services users can compare the various fees and charges offered by financial intermediaries, for all brands available in the Dominican domestic market and thus make the choice that best suits them in terms of the most competitive market interest rates.

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