The national government included in the decree of necessity and urgency (DNU) released on Wednesday night a series of significant modifications to the Credit cards.
“It is necessary to carry out strong deregulation and simplification in the credit card market, adapting it to recent changes in relationship modalities and digitalization technologies,” argues the DNU.
In addition to repealing several articles of Law No. 25,065, the DNU redefines the Credit Card System, as a set of individual contracts with three main purposes:
a) Enable the user to carry out purchase or lease operations of goods or services or works, obtain loans and advances of money from the system, in participating businesses and institutions.
b) Defer payment or returns to the agreed date for the responsible owner or finance it in accordance with any of the modalities established in the contract.
c) Pay the suppliers of goods or services for the user’s consumption in the agreed terms.”
The credit card issuer will be “the entity, of any nature, as long as it is contemplated within its corporate purpose, that issues Credit Cards, or that makes payment.”
Credit Card Denomination: The credit card is defined as a user identification instrument that can be physical or virtual, magnetic or any other emerging technology, emanating from a prior contractual relationship between the holder and the issuer.
Credit cards: the changes established by the DNU
Transparency in Financing Rates: Issuing entities are obliged to publicly disclose the financing rate applied to the credit card system.
Punitive Interest: It is established that punitive interest will not be capitalized.
Monthly operations summary: Issuers must prepare and send monthly a detailed summary, preferably in electronic form, of the operations carried out by the owner or his authorized parties.
Summary receipt time: it is specified that the summary must be received by the holder at least five days before the payment obligation expires, and in case of non-receipt, the holder must have a communication channel available to obtain the balance of the payment. account and the minimum payment.
Content of the Standard Contract between issuer and supplier: The minimum elements that the standard contract between the issuer and the supplier must contain are detailed, including validity periods, maximum limits per operation, commissions, interests, administrative charges, and other requirements.
Source: Ambito
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