The project presented under the previous administration sought to establish new parameters for the development of contracts between issuers and cardholders and to set limits on the interest charged.

"The project would put a ceiling of 25% on the rate of default interest and require the company issuing the credit card to use security mechanisms that allow the accreditation of the credit or debit card user to be monitored to avoid detrimental affects to the user.

In the current parliament there are now other bills seeking to regulate the issuer-client relationship in regards to credit cards.", published Elfinancierocr.com

Source: elfinancierocr.com

More on this topic

Banking Cards: Objections to Commission Regulation

July 2019

Not considering the costs of the collection process, nor market conditions, are some of the failures that banks identify in the bill being discussed in the Legislative Assembly of Costa Rica.

In December 2018, a proposal was presented in the country that seeks that the Central Bank of Costa Rica and the Commission to Promote Competition, set a single percentage in the commissions that businesses pay for accepting credit or debit cards.

Panama: Project for Changing Credit Card Law

October 2009

Its main objectives are setting fixed interest rates and limit customer's credit card debt.

The project also proposes to regulate credit card issuers, by forcing them to obtain a banking license awarded by the Banking Superintendence.

From laestrella.com.pa: "Alcibiades Vásquez, project sponsor, considers regulation is needed, as there is a lot of abuse, and no limits for credit nor interests".

Central Bank Rejects Setting Maximum Interest Rates

September 2009

In El Salvador, opponents of the law are proposing a maximum credit card interest rate controlled by the Central Bank.

Authorities from the Central Bank (BCR), the Superintendence of the Financial System and the Consumer Defense Directorate, presented a new law proposal to the Legislative Assembly.

El Salvador: Credit Card Law in its Final Stretch

July 2009

It will regulate the relationship between cardholders and issuers, by defining rules regarding contracts and interest rates.

With the new law, interest rates shall not be more than 10 points above the effective weighted average rate calculated by the Central Bank.

Guadalupe Hernández writes in Elsalvador.com: "For example, the average interest rate for a one year loan is 9.2%, so credit card rates could not be above 19.2% with the new law. However, in reality issuers charge interest rates that fluctuate from 29% to 38.9% for a $1.000 loan."