95 days following the total validity of the Credit score Card Regulation, decree 2-2024, which was accepted in February of this 12 months by Congress, the Financial Board revealed Decision JM 56-2024, which establishes the regulatory framework agreed upon in a technical desk wherein the Superintendence of Banks (SIB), the Banking Affiliation of Guatemala (ABG), the Directorate of Client Consideration and Help (Diaco) participated; the Affiliation of Cost Technique Issuers and the Financial institution of Guatemala (Banguat).
The regulation consists of VI chapters and 23 articles with particular provisions on credit score danger administration; disclosure of knowledge; supervision and compliance with worldwide safety requirements in bank card operations; the sanctions; and the transitional and closing provisions, which may even be in pressure from September 1.
This, in accordance with the aforementioned decision, so as to adjust to what’s established within the legislation, relating to that issuers should consider the fee capability of bank card and extra-financing candidates, in addition to of the account holders, with to ensure that them to well timed fulfill their obligations throughout the time period of the aforementioned financing.
Predominant components
Article 6 of the regulation states that issuers should consider people or authorized entities that request bank cards, extensions or further financing, contemplating their fee capability, compliance expertise and scale of complete debt.
In article 8, which refers back to the minimal fee, it states that issuers will calculate it month-to-month by including 2 % of the excellent stability as of the closing date; curiosity on the agreed price; default curiosity; commissions and different fees; and past-due quantities of minimal funds from earlier months.
Concerning curiosity in fee agreements, article 10 establishes that they may solely be calculated on the stability of credit score capital that motivated the fee settlement, with out contemplating curiosity, surcharges, late fee curiosity, commissions or different companies that may very well be a part of the fee settlement. quantity of the aforementioned settlement.
“As an business, we govern our exercise beneath a sequence of rules that search, basically phrases, client safety and inspiring financial development, in addition to self-regulation”
Juan Bernardo Rivera, director of the Affiliation of Cost Technique Issuers
Moreover, in accordance with article 19, as of March 1, 2025, issuers should calculate the minimal fee for playing cards that had been issued earlier than the validity of the indicated legislation, for the needs of capital amortization, within the following gradual method:
- From March 1, 2025 to August 31, 2025, 1% of the stability pending fee will probably be utilized to the closing date.
- From September 1, 2025 to February 28, 2026, 1.5%
- Beginning March 1, 2026, 2%
The creation of the brand new regulation had as its background the Credit score Card Regulation and the Regulation of Banks and Monetary Teams, relating to firms specialised in issuing and managing bank cards (article 36) and lively operations-banks relating to issuing and function bank cards (article 41).
Worldwide bank card regulatory practices in nations equivalent to Mexico, Honduras and Peru had been additionally analyzed. The laws had been offered by the SIB to the members of the Financial Board, who discovered regarding it of their session on Might 22.
They put together for the validity
Juan Bernardo Rivera, director of the Affiliation of Cost Technique Issuers (Aempg), acknowledged that when analyzing the laws of the Credit score Card Regulation, the place is that “he sees it as optimistic {that a} declaration has been developed, which has the technical bases to actually defend customers and set up authorized results, being the executive complement to the legislation issued this 12 months.”
Concerning the three primary scopes of the laws that may come into pressure, he responded:
- The laws, along with the legislation, search to guard the buyer as their primary goal.
- Deepen the credit score evaluation of the cardholder, previous to granting a bank card or extra-financing.
- Continuously disclose accessible and clear data to the cardholder regarding rates of interest, commissions and different fees utilized to bank cards, in order that customers might make a greater determination.
Lastly, he up to date that the sector is making ready for the validity of the aforementioned legislation subsequent September: “Since earlier than, as an business, we’ve got ruled our exercise beneath a sequence of rules that search, basically phrases, to guard shoppers and encourage development.” financial, in addition to self-regulation. Nonetheless, all issuers are engaged on the operational and methods half to adjust to the provisions of the legislation, which comes into pressure on September 1,” he concluded.
Diaco: There’s certainty
The Directorate of Client Care and Help (Diaco), connected to the Ministry of Economic system, commented that it’s passable for a technical entity to know the publication, because it supplies certainty and authorized assist to financial brokers.
The institutional place signifies that it denotes a dedication to the monetary customers of the nation’s monetary entities such because the JM and the SIB, who’ve been offering technical assist for a number of months to the Diaco staff, which is making ready for the implementation of the legislation.
It was acknowledged that since final March 1, when the aforementioned decree was revealed, the technical desk was shaped to organize the draft regulation of the legislation, and inside that desk, the reforms to the Diaco legislation had been additionally addressed. , for the incorporation of issues associated to entities supervised and never supervised by the supervisory entity of the monetary system.
Administrative changes are additionally made to outline certified personnel with the required profile to deal with the brand new Monetary Providers Safety Unit that may come into operation on September 1 and can deal with these instances.
And relating to the outcomes anticipated with the validity of the Credit score Card Regulation, the Diaco acknowledged:
- Technically and legally monitor compliance with laws.
- Empower monetary customers, giving relevance to the primary authorized instrument that will probably be had with the Monetary Providers Safety Unit.
- Promote transparency requirements that come to life with legislation enforcement.
- Publish data of curiosity to customers of the monetary system, in addition to present coaching in monetary schooling.
Card numbers
With figures as of April 30 disclosed by the Superintendency of Banks (SIB), the credit score portfolio by sort of credit score asset for bank cards reported by banking establishments is This fall,136 million and with a capital stability of Q33,000. 733 million.
That is equal to a participation of 9.6% of the overall capital stability, which is Q352,369 million.
Concerning the weighted common rate of interest, as of final April a variety of 45.84% to 59.04% was reported for consumption in nationwide foreign money. Whereas in international foreign money it’s between 25.86% and 41.56%
#Credit score #Card #Regulation #pressure #September #laws