Guatemala: Credit Card Law

Carlos A. Mendoza, CABI analyst, warns that the text of the bill on credit cards has been written without consulting financial consumers, and cites as an example the Salvadoran law on the same subject. The result is that the initiative “leaves serious gaps, to the financial detriment of consumers, who would have their rights violated, but now in an explicitly and legally sanctioned way."

Mendoza said that the lack of information given to Guatemalan citizens in finance matters "is brutal" and that in the places where decisions are made on the subject, "the only ones with voice and a vote, as well as other extra-legal powers are groups with clear conflicts of interest, such as domestic private bankers. We refer to the Monetary Board of Guatemala, in which CACIF also participates. "

Source: Central American Business Intelligence

More on this topic

Nicaragua: Credit Card Law Reviewed

October 2010

The amendments to Law 515 could be approved at the National Assembly in two weeks.

Sandinista legislator, Wálmaro Gutierrez, requested the Economic Commission to approve the report which is ready for signature since June.

Laprensa.com.ni reports, "The Assembly Board stipulated 1 week timeframe for the Economic Commission to pass and approve the report”.

Guatemala: Credit Card Reform Presented

January 2011

The Government presented Congress the Credit Card bill.

The bill if approved by Congress, will regulate the contracts, demanding to provide the given credit limit, interest rates, fees and charges which apply. The institution issuing the credit card must provide the customer a copy of the contract.

Salvadoran Banks Oppose Fixing Interest Rates

July 2009

A credit card law proposal being studied by the Legislative Assembly would set a maximum interest rate of 22%.

Both the Banking Association of El Salvador (ABANSA), and the National Private Enterprise Association (ANEP), support the creation of a credit card law, that would provide greater transparency to the market, but disagree in regulating interest rates.

Central Bank Rejects Setting Maximum Interest Rates

September 2009

In El Salvador, opponents of the law are proposing a maximum credit card interest rate controlled by the Central Bank.

Authorities from the Central Bank (BCR), the Superintendence of the Financial System and the Consumer Defense Directorate, presented a new law proposal to the Legislative Assembly.