New Setback for Credit Card Law

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

Thursday, January 3, 2019

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.

See "Guatemala: Credit Card Law Suspended"

Elperiodico.com.gt reviews that "... The challenged articles were mainly 2, 4, 9, 11, 12, 16, 23, 29 and 41 of the Law, considering that there are inconsistencies, generate legal insecurity, unequal treatment by the law and goes against established legal processes. Most of them refer to the ability to pay, interest on arrears, debt restructuring, interest on financing and statements of account."

The deputy rapporteur of the Act, Ronald Arango, said that "... the CC took two years and nine months to solve definitively, in addition to cancelling the Decree by majority and not unanimously." He added that "... in January 2019 will present a new law initiative to regulate this issue."

On December 21st, 2018, the Court informed of the final judgment, therefore the Association of Issuers of Means of Payment of Guatemala indicated that they will pronounce after they are notified.

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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: 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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