Guatemala: Credit Card Law Suspended

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.

Friday, April 1, 2016

The Constitutional Court (CC) has provisionally suspended the Credit Card Act, which came into force on March 8. Gloria Porras, president of the CC, told Prensalibre.com that one of the major failings was that Congress did not pass the Law with 105 votes, which is defined as a majority.

See also: "Guatemala: Another Attempt to Suspend Credit Card Law"

"... Recently, on March 22, the Banguat filed an appeal of unconstitutionality against articles related to the setting of interest rates and financing as well as the issuance of regulations. Porras said another one of the institutions that challenged the law argued that, for its approval, the Legislature should have requested an opinion from the Bank of Guatemala and the Monetary Board, and revealed that it will be the next CC judges who will issue the sentence. "

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

"... Luis Lara, president of the Banking Association of Guatemala (ABG) believes that the decision of the CC to unanimously suspend the Law is important. He said that in years past consumption through credit cards has been growing at a rate of 8 % a year, but in March, while the rule was in effect it declined by 15%. Lara said that the issuance of new cards was reduced by 50%, according to calculations by the banks. "



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: Appeal Against Credit Card Act Rejected

February 2016

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

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.

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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