El Salvador: Store Credit Unregulated

A study by a Salvadoran consumer rights organization found that most store cards charge annual interest rates of between 36% and 91%.

Wednesday, September 8, 2010

El Salvador's Credit Card Law, approved last November by the Legislative Assembly, regulates transactions made using credit cards. However, cards offered by shops and stores that use a contract as confirmation of the agreement fall outside this law.

Ana Guadalupe Arias, legal representative for the Credits and Liabilities Regulator, told Elsalvador.com that, "we do not see credits from commercial stores. These are practically outside the law, nobody regulates them".

The approval of the Urura Law is anticipated to offer a solution to this problem but this currently bill is stuck in Congress.

More on this topic

Unstoppable Consumer Credit in Costa Rica

September 2017

In 2010 average household debt per household was around $3,000, and last year, just six years later, the figure exceeded $6,500.

Data compiled by Nacion.com shows that the average debt of each Costa Rican household indicated in the analysis only takes into account financing with supervised entities, meaning that it could be be omitting loans taken out for consumption through other sources of unregulated financing, such as pay day lenders and pawn shops, among others.

Panama: Cost of Borrowing Is Cheap

June 2015

Competition to attract customers into the banking sector in Panama and low interest rates account for the 12% growth in consumer credit between March 2014 and March 2015.

Between March 2014 and March 2015 the balance of the portfolio of consumer credit from Panamanian banks recorded an increase of 12.26%, exceeding $8 billion.

Plastic Money in Nicaragua

February 2015

Between December 2013 and December 2014 loans to cardholders increased by 27% while the number of inhabitants having possessing at least one card reached 800,000.

At the end of 2014 it was reported that 800,000 Nicaraguans who are cardholders have on average two credit cards.

Panama: New Regulations for Credit Companies

September 2009

The Commerce and Industries Ministry is preparing the regulation, which could be ready in two months.

Setting maximum limit for interests, in addition to regulationg closure expenses, are the key issues of these new rules.

"Minister Henríquez expects to consult with affected parties and have the rules approved within the next 60 days.

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Pacific Credit Rating El Salvador

Organization that operates in Costa Rica, El Salvador, Guatemala and Panama.
Phone: (503) 2266 9472

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