Interest on arrears is intended to discourage the loss of obligations. They should not be set at an extremely low level, so it is advantageous for the creditor to discuss the debt in court, given the best return on capital in the financial market. On the other hand, however, they must not be too high and even prevent the debtor of doubtful rights from invoking verification of his obligation. If you find yourself in a situation where you pay default interest, you know how it works and how it is calculated. Because if you do not know your calculation formula, you can hardly check if the amount to be paid is correct. Next, we will explain how this interest works. Whether the contractual interest or the legal interest may fall within the scope of civil or commercial law. After reading this article, some judges began to apply the SELIC (Special Liquidation and Custody System) rate to federal securities, also as a default interest rate on judicial convictions in all cases, regardless of the issue addressed in the case. Although these precedents exist, most judges apply 1% per month to court decisions of general interest, referring to the old agreement signed in 2002 by the Centre for Judicial Studies of the Council of the Federal Supreme Court (CJF), which led to Declaration 201. First of all, it is important to highlight the impact of both forms of interest impact on criminal actions, based on a hypothetical situation of a trial that has lasted for 5 years.
That is, default interest is calculated according to the interest rate, but also from the moment you expired the payment date until the day you paid your debts. „Unless otherwise provided by law, default interest of one per cent per month shall be charged.“ For this reason, the interest rate limit that could be levied on loans between non-financial corporations could not exceed 12% per annum. Nevertheless, there is controversy over the constitutionality of SELIC fees, including the involvement of Supreme Court justices. But there is a vote of the E. The Minister-Rapporteur, Luis Felipe Salomão, who expresses the feeling that for civil debt, the best mechanism to focus on convictions would be to apply the official monetary correction index plus the interest rate of 1% per month, which is contrary to the position of the Supreme Court. At the same time, this interest rate varies depending on the classification of companies from which the loan is requested. Indeed, public institutions have a different tariff than private institutions. The sum of the amounts to be paid is therefore the amount of the debt + default interest (amount of the debt x loss of interest / number of days late x 365) + commission (amount of the debt x TAN). Interest moratorium = 250 x (TAN + late payment surcharge) / 360 x 30 = 250 x (2% + 3%) / 360 x 30 = 250 x 5% /360 x 30 National case-law has held that default interest cannot give rise to accrued interest.
It follows that statutory interest due in the event of non-payment for the performance of a pecuniary obligation cannot in principle bear interest. This is without prejudice to the fluctuations that this interpretation may have in the case-law and the possibility of a penalty payment provided for by law when a judicial decision orders the payment of a sum of money. According to Opinion No. 13486/2021, the default interest rate on commercial debt in the second half of 2021 is 7% for contracts concluded before 1 July 2013. For contracts covered by Legislative Decree no. 62/2013 or contracts concluded after 1 July 2013, default interest is 8%. If you have debts to the State or public institutions, the interest rate for late payment is set annually. In 2021, the Treasury and Public Debt Management Agency issued an opinion No. 369/2021 announced that the default interest rate on debts to the State is 4.705%. Cash management is essential in any business and it can be difficult to get it right. To overcome the many challenges, it is extremely important to use the latest technologies to automate the many (and often manual) workflows.
Interest may be set by the parties or may result from the law. When they are set by the parties, they are called contractual interests. If they come from the law, they are called legal interest. Further information on the calculation of the statutory interest rate is available on the website of the Directorate General of Finance and Finance of the Ministry of Finance: The Understanding of the Special Court of the Supreme Court (EREsp 727.842/SP, Rel. Min. Teori Zavascki, 8/9/08), in which it is stated that the data referred to in Art. 406 for the SELIC moratoriums, SELIC, which was even consolidated in an appeal against the rite of repetition (REsp 1.102.552/EC – 1st section, Rel. Min. Teori Albino Zavascki, DJE 6/4/09). For example, default interest is always charged on debts owed to the State and public institutions, debts owed to banks and financial institutions, private service providers or commercial institutions. If the debt relates to a commercial transaction, such as the electricity or water bill, default interest is calculated based on information disclosed by the Treasury and Finance Directorate. But in the case of commercial debt, this information is published every six months.
Depending on the historical moment, a fixed interest rate can be low or very high, as the current Brazilian economic scenario is currently taken into account. Therefore, the SELIC interest rate, because it is variable and serves as a reference for the financial market, seems to better reflect this reality. Amount of default interest = amount of debt x default interest / 365 (days in a year) x number of days the debt is past due Total liabilities = (amount of debt x default interest) / 365 days x number of days late The Consumer Code (Law No. 8.078/90) does not expressly provide for the interest rate for late payment. Doctrine and case law indicate the value of 1% per month or 12% per year, the same legal moratorium on interest established in Article 406 of the Civil Code in force. In the interpretation of this legal text, two main currents have crystallized. The first, provided that the interest rate is 1% per month in accordance with the provisions of Article 161 § 1 of the National Tax Code (CTN), and the second, which would be the reference rate of the Special Settlement and Custody Regime (SELIC) under the provisions of Law 9.250/95, Law 8.981/95 and Law 9.430/96.