Feb. 1, 2017 New Rules for Credit, Debit Card Issuers in Ecuador

cisepp.com (machine translated)reported starting today, new rules apply for the use of credit, debit and payment cards (bonds), stipulated in resolution 310-2016-F of the Monetary and Financial Policy and Regulation Board issued on December 8, 2016 The standard regulates cards issued and / or operated by financial institutions under the control of the Superintendency of Banks. The provisions cover technical changes. One of them establishes that the issuance of cards will be made after the client sends a request of request.

That is, the operators can not deliver the product unilaterally. It was common for financial or commercial entities to send “complimentary” cards without having been required. From now on, the issue can only be made once it has been accepted in writing by the client; Otherwise it will be considered null. Analyst Bertha Romero, from the financial education program Tus Finanzas, believes that this will control the delivery of cards that until now occurred at the discretion of the operator without, in some cases, the consumer has authorized.

THINKING OF MOVING TO ECUADOR – THIS IS ONE BOOK THAT IS A MUST READ

The core of the resolution establishes new mechanisms for the collection of interest on financing and arrears depending on certain cases. If the cardholder has made the minimum payment or a higher amount but does not cover the total fee, the financing interest will be on the balance of the capital pending current cancellation or the revolving balance (debt of last months) from the date of the beginning of the cut . Romero explains that, for example, if a customer owes $ 1,000 per card consumed in the month, but only pays $ 300, interest will be calculated on the remaining $ 700 and no longer on the initial debt, as was the case before. The issuers will charge interest for late payment when the maximum cancellation date expired, the client did not cover the minimum payment.

The surcharge will be applied to the minimum payment that appears on the statement, clarifies Romero. If the payment is due and no transaction has been made, the financing interest will be applied to the outstanding principal balance less the minimum payment. For this case, following the example above, if the minimum payment is $ 50, the surcharge will be calculated from the difference between $ 1,000 minus $ 50. That is, the interest will be generated for $ 950. Will generate interest of additional financing to the agreement with the client. “The user should be aware that interest is charged on what corresponds and no longer the entire debt,” he recommends. With regard to statements of account, the Board orders the monthly delivery in physical form based on a model of the Superintendency of Banks.
The financial entities will distribute these documents in virtual format, through electronic mail, upon request and written acceptance by the cardholder. Institutions have provided this service for some time or you can also check the statement through the digital portals, the difference is that now they must do so with the authorization of the user. Another benefit to the cardholder is that he can terminate the card contract at any time, without major complications. However, if there are outstanding fees, the balance due will remain as a credit operation in the institution. In other words, economist Julio Mosquera explains, the customer will no longer be able to use the card, but must continue to cover payments with the same conditions.
Reward plans that are included in the contracts can not be altered without the client’s authorization and, in addition, they will have no cost. The cardholder may transfer their plan to another cardholder who has similar benefits. In case of loss, subtraction, theft or theft of the card, the financial entities will assume the payments of the cards. When computer fraud occurs, due to system weaknesses or defects, the institutions will respond for the responsibilities that this generates.

The coverage will apply when the customer notifies in writing within 48 hours after the event. In addition, you will be able to take out an insurance that will pay the debts owed in case of death or disability. Read Article