The Legislative Chamber (CLDF) has enacted a new law that creates a subsidized credit program to help overindebted citizens of the Federal District.
The text, written by MP Gabriel Magno (PT), modifies complementary law number 50/1997, which regulates the Consumer Rights Defense Fund (FDDC), allowing its resources to be used to offer credits at lower interest rates to people who prove that they are in over-indebtedness.
The goal of the new legislation, according to the district, is to ensure that consumers in financial difficulty can obtain loans with subsidized interest rates, guaranteeing the “existential minimum” and preventing their income from being compromised by “unpayable debts.”
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The measure builds on the federal Overindebtedness Act, which aims to protect the dignity of consumers and ensure that a portion of their income is allocated to basic needs.
Use of FDDC resources
Created in 1997, the Consumer Rights Defense Fund has not been fully used to help people who are overindebted. With this change, the fund’s resources, previously allocated to other policies, will now be allocated to providing credit to those who need it most.
Although the law has been assented to, the DF executive has yet to regulate the operational details of the program’s implementation.
The hope is that with more accessible credit, consumers will be able to consolidate their debts and reorganize their finances, without jeopardizing their family’s livelihood.
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