Changes in Credit Card Market

With the approval of the reforms to the Credit Card System Law, in El Salvador it will be banned to charge interest on surcharges generated by arrears.

Friday, August 16, 2019

The reforms also establish that banks must deliver free of charge settlements and cancellations of credit cards, physically or electronically, at the latest within 24 hours, while the documents of obligation or promissory notes that the debtor has signed must be returned within 5 business days maximum, informed the Legislative Assembly:

You may be interested in "More Credit Cards in El Salvador

From the Legislative Assembly statement:

Thursday 15 August 2019. The Legislative Plenum approved reforms to the Credit Card System Law, with the purpose of protecting the economy of cardholders, against complaints of excessive charges.

These are 12 reforms, among which the prohibition of charging interest on late payment surcharges or that this is reflected as purchase or capitalization.
Also, the reforms establish that banks must deliver free settlements and cancellations of credit cards, physically or electronically, at the latest within 24 hours, while the documents of obligation or promissory notes that the debtor has signed must be returned within 5 working days maximum.

With respect to damages caused to the cardholder such as theft, robbery, loss or fraud, the bank must provide full coverage, as well as in case of death or other that it deems appropriate according to the coverage contracted. In addition, they shall be obliged to guarantee free of charge for fraud investigation procedures.

Read full article (In Spanish).



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