For the second time a motion has been filed to temporarily suspend the enforcement of the law, with arguments once again made that the relevant processes were not followed and that its application will have adverse effects on the Guatemalan financial market.

From a statement issued by the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Committee CACIF:

CACIF's president, Jorge Briz Abularach, representing the organized business sector presented to the Constitutional Court an action seeking the interim suspension of the Credit Card Act.

According to legal analysis carried out, Decree 7-2015 involves a series of unconstitutional features which represent a flawed legislative process. Amendments must be approved by a qualified majority, which did not happen. Nor was the criteria met for financial specialists and opinions from committees were not submitted.

See also: "Guatemala: Appeal Against Credit Card Act Rejected"

CACIF also believes that there has been a violation of the right to equality of future cardholders and the issuers of them, as well as freedom of action and freedom of contract in trade and industry.

Similarly, it obliges the violation of confidential conditions of users by giving the Superintendency of Banks the title of comptroller of the entire national commercial credit.

See also: "Guatemala: Impact of Limits on Credit Card Interest Rates"

The private sector is mounting a defence using technical arguments and considers that the State must provide mechanisms to protect the market economy. Similarly, it is clear that the legislature can not intervene in the development of supply and demand in the financial market.

More on this topic

Credit Cards: Discussion Continues in Guatemala

May 2019

Regarding the new bill presented to Congress at the beginning of 2019, the Superintendence of Banks is of the opinion that the interest rate should not be limited.

The Credit Card Law came into force on March 8, 2016, but was suspended at the end of the same month, after business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC).

New Attempt to Regulate Credit Cards

January 2019

After the law seeking to regulate the credit card market in Guatemala was declared unconstitutional, a new proposal was presented.

The Credit Card Law that was declared unconstitutional at the beginning of 2019, entered into force on March 8, 2016, however, after the business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC), was suspended on March 31 of that year.

Guatemala: Credit Card Law Suspended

April 2016

The Superior Court has ordered the temporary cancellation due to lack of a ruling from the Bank of Guatemala, and the fact that Congress gave approval without having a majority, as stipulated by law.

The Constitutional Court (CC) has provisionally suspended the Credit Card Act, which came into force on March 8.

Costa Rica: Tax on Money Inflows Could Be Unconstitutional

February 2013

The taxes and proposed measures to control the influx of "hot capital" could be confiscatory and in violation of the principles of reasonableness and proportionality.

The bill which aims to grant extraordinary powers to the executive branch to regulate the entry of foreign capital into the country was approved in committee and has been passed to the legislative plenary for discussion.