Some credit services providers in Costa Rica have included a new rate in the previous information of their services and contracts: the TITA rate. What is this rate about, and why is it important?


  • What is the TITA rate, and what does it mean?

TITA is the abbreviation for Tasa de Interés Total Anual (Total Annual Interest Rate, in English). It is an informative rate for consumers to know which would be their loan’s interest rate, including the other compulsory costs of the loan rather than the nominal interest rate: fees, expenses, penalties, and others.

This rate was introduced by the recent reform to Decree Number 43270-MEIC, which regulates the content that credit contracts offered to consumers must have, for example, those loans granted by banks, financial institutions, or businesses that provide financing for their products, including credit cards, mortgage or vehicle loans and the financing of household appliances or other products


  • How must the TITA be informed?

Credit services providers must include the TITA in the information brochures given to consumers before signing the contract. TITA must be in the contract and loan statements as well. That means that the credit providers must update the current TITA rate for each loan and provide it to the debtor in the monthly loan statement.


  • Why is TITA important?

The TITA rate is part of the new requirements in the Regulation of financial, commercial, and microcredit operations offered to consumers. Credit services providers must consider the TITA rate in their contracts to be approved by the National Consumer Commission.


Therefore, the previous information for consumers, contracts, and loan statements must include the TITA rate to comply with Decree Number 43270-MEIC.


We will gladly assist you if you have questions about incorporating the TITA rate in brochures and consumer contracts.


Andrés Alvarez

[email protected]