Guatemala: Appeal Against Credit Card Law

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.

Thursday, January 21, 2016

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.

The injunctions were filed by the Association of Banks of Guatemala (ABG), the Association of Payment Card Issuers (AEMPG) and as a third party, the representative Ronald Arango asked to be included. "

"... According to Luis Rolando Lara Grojec, president of the ABG, changes need to be made to the Law on Credit Cards as he believes that there have been abuses, but changes should be made based on technical aspects and not political and populist issues. "



More on this topic

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: Call to Veto Credit Card Law

November 2015

Issuers have objected in particular to the cap on interest that can be charged, citing an increased credit risk and a reduction in the number of cardholders.

An article on Lahora.gt reports that "... Roberto Fuentes, of the Association of Credit Card Issuers of Guatemala (AEMPG), said the Credit Card Act does not have the technical basis necessary to actually have a positive effect on users.

Guatemala: Impact of Limits on Credit Card Interest Rates

November 2015

The new law will prevent usury and harassment of users, but will also affect consumers and business activity by leaving at least 500,000 Guatemalans without access to this payment method.

Decree 7-2015 of the Law on Credit Cards, approved by the Guatemalan Congress will come into force in three months time and will put a cap on interest rates that can be charged by card issuers, the procedures used to collect from defaulters, but at the same time will limit access to an important method of payment.

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Tailor made software for construction companies

O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Apr 3)
Brent Crude Oil
35.86
Coffee "C"
116.10
Gold
1,638
Silver
14.525