The mega DNU that Javier Milei signed a few days after assuming the Presidency was questioned on several points, but not regarding the banking and credit card business. For this reason, entities begin to adopt the provisions that this standard provides them.
By regulation, banks must inform clients two months before making any changes to contracts. While several entities analyze the modifications to be implemented, a leading bank has already begun to inform its clients about them. “We tell you that, starting in April 2024, you will see on your credit card summary the rate applicable to punitive interest,” says the virtual communication from a bank.
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Basically, the 50% cap on the penalty rate was eliminated, that is, the rate that is paid daily for not paying even the minimum summary payment. This cost is added to the compensatory interest that runs on the difference between the amount paid and the total payment.
Punitive interest appears when the client fails to pay the minimum payment. (Photo: Adobe Stock)
The entity indicates that the new text of the contract will be as follows: “Payments after the due date, those credited after that date, or the unpaid difference between the Minimum Payment and the Total Payment, will accrue interest on the amount due from the due date. Penalty interest accrues from the day following the due date of the summary and on the unpaid minimum payment. The penalties are recorded in the account and expressed in the summaries, as is the applicable rate.”
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The same bank notifies its clients that it will inform “in a timely manner the exchange rate applicable to pay your consumption in foreign currency with pesos.” Also on this point, the card issuer indicates the new wording of the contract: “Expenses, consumption and other charges in foreign currency will be settled, registered or collected, in accordance with the regulations in force on the date of settlement, registration or collection. The amount delivered to pay charges in foreign currency is considered on account of the final settlement at the exchange rate reported by the bank from time to time.”
Changes to the credit card contract must be informed to the client two months before they come into effect. (Photo: Adobe Stock).
Finally, the communication reminds the client that they can choose to terminate the contract at any time before the change comes into effect and without charge. If this is done, of course, the client will have to pay the outstanding payments so far.
Credit cards: the changes after Javier Milei's DNU
The DNU should still be analyzed by a bicameral commission in Congress, which accepts or rejects the regulations. This working group has not yet been formed and there are no clues as to when the process will begin.
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At the same time, there are several claims for articles or topics, particularly before the Justice, which may declare the nullity of certain parts of the norm. At the moment, there are no known proposals regarding changes in credit cards. The main modifications in this aspect are the following:
Any company can issue credit cards if it has that corporate purpose. They do not have to be dedicated to finance or commerce. Cards can be physical or virtual. The commissions that credit card issuers charge businesses have been released so that they can receive payments through plastic cards. There are no limits or limits to discrimination against small businesses. There are also no established deadlines to credit the amount of sales made. It eliminated the cap on punitive charges that card issuers can apply. Until now, they were limited and could not exceed by more than 50% the rate that the institution applied as punitive interest. Only the possibility of capitalizing these punitive interests was restricted. The rule that declared void the clauses that imposed a fixed charge for late payment of the summary was also repealed. This means that banks will be able to set a surcharge on this concept. The rule that established the mandatory data that had to appear on the plastic was eliminated. There is no longer regulation on how to write the credit card contract. The article that said that the request for the issuance of the Credit card or its additional ones did not generate any responsibility for the applicant. The Central Bank will no longer sanction entities that do not comply with the obligation to inform or with the provisions relating to the level of rates to be paid. apply.The article that regulated the information regime of the card issuer to the suppliers was eliminated and, among other things, established that the data must be sent in the event of loss or theft of cards. Card issuers can now share with the bureaus of credit (such as Veraz) the data of holders who have defaulted or refinanced. It is no longer mandatory for issuers to send a monthly report to the Ministry of Commerce with their offers so that that organization can publicize them.