Credit score Card Regulation
They regulate new calculation of minimal funds and curiosity on bank cards
The regulation that can give full impact to decree 2-2024, Credit score Card Regulation, was revealed this Monday and specifies the scope of the brand new regulatory framework.
The Financial Board revealed the rules to the Credit score Card Regulation that can come into drive on August 1. (Free Press Picture: Unsplash)
The Financial Board (JM) revealed as we speak, Might 28, the Central American Newspaper Decision JM-56-2024 that features the rules of the Credit score Card Regulation, decree 2-2024, accredited by the Congress of the Republic final February and sanctioned by President Bernardo Arévalo
The regulation consists of VI chapters and 23 articles that set up the brand new normal provisions; credit score threat administration; disclosure of data; supervision and compliance with worldwide safety requirements in bank card operations; the sanctions; and the transitional and last provisions.
Article 6 signifies that issuers should consider people or authorized entities that request bank cards, extensions or additional financing, contemplating their cost capability, compliance expertise and stage of complete debt.
Concerning the minimal cost, article 8 signifies that issuers will calculate it month-to-month by including 2% of the excellent steadiness as of the deadline; curiosity on the agreed fee; default curiosity; commissions and different fees; and past-due quantities of minimal funds from earlier months.
Concerning curiosity in cost agreements, article 10 establishes that they may solely be calculated on the steadiness of credit score capital that motivated the cost settlement, with out contemplating curiosity, surcharges, late cost curiosity, commissions or different providers that may very well be a part of the cost settlement. quantity of the aforementioned settlement.
Moreover, in accordance with article 19, as of March 1, 2025, issuers should calculate the minimal cost for playing cards that have been issued earlier than the validity of the indicated regulation, for the needs of capital amortization, within the following gradual method:
- From March 1, 2025 to August 31, 2025, 1% of the steadiness pending cost can be utilized to the deadline.
- From September 1, 2025 to February 28, 2026, 1.5%
- Beginning March 1, 2026, 2%
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