Nicaragua: Credit Card Bill Paralyzed

The amendment to the Law on Promotion and Regulation on the Use of Credit Cards (Act 515) would not prosper.

Thursday, October 28, 2010

The reason would be the Government´s commitment with the International Monetary Fund (IMF) to dismiss this issue.

According to Laprensa.com.ni, a source close to negotiations with the IMF confirmed "that the Government has expressed its commitment that the amendments to Act 515 are a topic which is no longer under discussion."

More on this topic

Nicaragua: Reform on Credit Card Law

June 2009

Some of the initiatives presented include suspending legal action to collect credit card debt and regulating the interest rates charged.

Economist Alejandro Aráuz asserts that these initiatives would not represent any harm to local banks.

Laprensa.com.ni highlights the comments of the economist: "At no time would this law affect banks.

Salvadoran Banks Warn of Fewer $1.000 Credit Cards

July 2009

According to ABANSA, the proposed maximum 22% rate would affect credit cards with a $1.000 limit or less, 59% of the market.

The Salvadoran Banking Association, known as ABANSA, warned of fewer supply of credit cards with less than $1.000 limit, if the credit card law proposal being studied is approved.

El Salvador Passes Credit Card Law

November 2009

Among the new regulations, fees for late payments cannot be higher than $25.

This law has been discussed by the Legislative Assembly for 7 years. It forces issuers to send statements to their customers with 15 days of anticipation, but refrains from set maximum interest rates.

Nicaraguan Banks Oppose Credit Law Reform

June 2010

They argue that rates cannot be lowered any more, and they would prefer regulations issued by the Superintendence instead of new laws.

Juan Carlos Arguello, president of Asobanp (Association of Private Banks of Nicaragua) said that the sector does not support an amendment to Law 515 of Credit Cards, as they consider more convenient to have regulations issued by the Superintendency of Banks, as this would be "less disruptive to the system", he said.

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