Capitalism is a great concept though there are some unjust while unscrupulous firms that exploit consumers. Ironically, these clients enter an agreement, but are often unaware of the small written details in minute (miniature) print that form a contract. Even if readable, often solicitors (lawyers) write in such a way that these intricate details are unfathomable (inscrutable).
The machine then can be compared to a mafioso type set-up, in which it abuses victims although the difference is that they do it legally instead of criminally. In other words, they’ve found a loophole which benefits them greatly though more often than not, dodgy (deceitful) accords are so long in length that clients either don’t read such extensive documentation until the end, or they confide in the seller.
One completely legal, but potentially criminally intent contract offered to customers in Brazil is credit cards. On the one hand, credit cards are extremely convenient for monetary purposes such as online purchases, buying from stores in monthly repayments, or facilitating outgoings by having available money on a card, as opposed to having to draw wads (piles) of cash from a machine which can be theft risky.
Credit cards in Brazil have extremely high tariffs levied against clients if they pay late that can be as high as 875%. Without a shadow of doubt the Brazilian banking system exploits ordinary consumers. Whilst the banks have redefined their interest rates to reflect decreases in charges the method doesn’t facilitate late payers. In others countries, the interest rate doesn’t reach 90%. All other countries charge even less (see chart).
Ever since arriving in Brazil back in the 80s and learning of the credit card money laundering scheme available to clientele it has struck me as something the Brazilian authorities should have arbitrated to improve the country’s economic future. If dire circumstances are encountered then monthly payments cannot be met, and to worsen the situation credit card companies are only making matters worse.
By encouraging consumer spending it increases growth, satisfying customers, and helps manufacturing plants as well as business in general. In fact, practiced in the strongest economy in the world, the United States of America it is a tried and tested system that sustains economic growth.
Everyone says, ‘when in Rome act like a Roman’ i.e., follow their customs. So, I’ve kept my mouth shut all these years. However, the real problem lies in how the banks manipulate clients by promising them financial support, and then when they run into difficulties penalizing them the most.
The credit card scam has always been legal theft for those who pay late. Clients are being punished excessively beyond the financial possibilities of ordinary people with overpriced (extortionate) interest.
Written by Carl Boniface
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