Guatemala: Appeal Against Credit Card Act Rejected

The appeal filed against the law establishing ceilings on interest rates charged by card issuers has been rejected by the Constitutional Court.

Tuesday, February 9, 2016

The Constitutional Court (CC), rejected the appeals filed against the Credit Card Act , presented in January by the Association of Banks of Guatemala (ABG), the Association of Card Payment Issuers (AEMPG) and Deputy Ronald Arango, reported Republica.com.gt.

The industry objected to the law since it was first proposed and condemned it because of the cap on interest that can be charged, noting that this would increase credit risk and reduce the number of cardholders.

"... According to the law there is an obligation to restructure user's debts when they reach 150% of the credit limit. The Act also provides that the credit limit of users and their extra-financing may not exceed twice their monthly income, among other things. "



More on this topic

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.

New Setback for Credit Card Law

January 2019

After 14 appeals filed, the Guatemalan Constitutional Court declared unconstitutional the law that attempted to regulate the credit card market in the country.

The Credit Card Law became effective on March 8th, 2016, however, after the business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC), it was provisionally suspended on March 31st of the same 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.

Guatemala: Appeal Against Credit Card Law

January 2016

Unconstitutionality lawsuits filed by banks and the Association of Payment Card Issuers may postpone the enforcement of the law, which was scheduled for March 2015.

The actions claiming unconstitutionality argue that when approving the controversial law, Congress did not follow the relevant processes, including the inclusion of the opinion of the Monetary Board on the part of representatives.

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