# Credit cards: These are the new amounts that will be paid monthly for credit relief insurance | NMR | ECONOMY

Financial entities will no longer be able to charge fixed amounts for credit card debt relief insurance, following the new regulations of the Superintendence of Banking, Insurance and AFPs (SBS), as a result of Law No. 31143, which protects Consumers of Financial Services from Usury.

In this sense, the companies are already adjusting the base of the payment of the liability insurance for the Credit cardswhich in some cases will already apply from this month.

According to the professor at Pacífico Business School, Jorge Carrillo Acosta, this modification consists in the fact that the banks will now calculate the average of the daily debt that you maintain during your billing cycle multiplied by an interest rate.

The rate that will be used for the calculation will depend on each financial institution. According to the norm, they do not require caps either, but that already depends on each institution if it does”, he referred to this medium.

He added that with this measure “It is intended to carry out a fairer deduction insurance that is based on your consumption”.

The problem is that it could be more expensive because that way you consume little and the rate they apply is high, in the end your payment will be more than when there was a fixed amount.”, specified the expert.

## What is credit insurance?

It is a compulsory insurance that covers credit card debts in the event of death or total and permanent disability.

The payment is monthly and is only charged if there is a debt on your card during the month.

## Know how your average daily debt will be

Es the sum of daily debt that you maintain in the billing cycle of your card divided by the number of days of your billing cycle.

For example, If you have a daily debt of S / 100 during the 30 days of your billing cycle, then:

What if I just got into debt with the S/ 2,000 card? “As you are just going to pay the following month, then, you owe S/ 2,000 every day and that is your average daily debt that will be multiplied by the new rate… Another thing is that you will amortize the paymentCarrillo said.

After having the average of your debt, the credit insurance commission is now calculated during a billing cycle of your card as follows. As an example: Average of your daily debt by the new rate that results in the month’s credit insurance.

## BCP

The Banco de Credito del Peru (BCP) will implement this adjustment in the amount of credit card relief insurance as of June 20 of this year.

Before they charged S/ 6.5 monthly premium, but now it will be 0.165% for the average daily debt, with a maximum limit of S/ 25.

## BBVA

The bank BBVA reported that for liability Insurance, the new monthly premium will be calculated by applying a monthly rate of 0.256% to the average of the daily debit balance of the billing period. Before the payment for this concept was S / 8.90.

In addition, they will set a maximum limit of S / 20.00 for the case of cards in soles and US \$ 5.50 for cards in dollars.

This measure will take effect for all its clients from May 20.

## Scotiabank

The financial entity Scotiabank will apply a monthly rate of 0.256% by the average daily debt since August 1 of this year. For now, the amount of S / 7.90 continues.

It will have a maximum limit of S/ 20 for debts in soles and US\$ 5.41 for debt in dollars.

## Interbank

According to the entity, in the following days they will have that information related to the regulatory changes of this insurance.

For now, a monthly premium of S/ 5.50 for credit card credit insurance continues to appear on its website.