Is Automatic Credit Card Bill Installment Illegal? Know What to Do!

If your credit card bill was automatically split into installments without your authorization, this could be an illegal practice. Know your rights and how to challenge it!

What is automatic installment billing?

Some banks automatically finance your unpaid balance in multiple installments instead of charging the full amount. This often happens without consumer consent, leading to high-interest rates and debt accumulation.

Why is this practice illegal?

According to Central Bank Resolution No. 4.549/2017, any installment plan must be explicitly authorized by the consumer. Banks must clearly inform customers about charges, interest rates, and conditions before processing the installment. Failing to do so makes this practice abusive and contestable.

Your Rights as a Consumer

To be informed transparently about any charges.

To cancel unauthorized installment plans and request refunds.

To demand double reimbursement for undue charges, as per the Consumer Protection Code.

To seek compensation for moral damages if financial loss or credit score damage occurs.

What to Do If This Happens to You?

Check your statement: If you see an unauthorized installment charge, contact the bank immediately.

File a complaint: If the issue is not resolved, report it to the Consumer Protection Agency or the Central Bank.

Seek legal help: A lawyer can assist in recovering undue charges and ensuring your rights are upheld.

If you’ve been affected by automatic installment billing without consent, don’t let it go unchallenged! You have rights and can claim reimbursement.