The Chamber of Deputies approved a reform to the Law for the Transparency and Regulation of Financial Services, with which Undue charges, hidden commissions and the unsolicited issuance of bank cards are prohibited. The measure seeks to strengthen the rights of 40 million users of the financial system and prevent abusive practices that affect their economy.
With this modification, Financial institutions will no longer be able to issue credit or debit cards without express consent, nor charge annual fees, commissions or charges for products that have not been formally requested or accepted by the client.. The reform also establishes that all information on costs and conditions must be clear, truthful and accessible, in compliance with the principles of transparency and good faith.
“Many institutions send cards without having been requested and then charge annuities or interest for not paying them, even affecting the credit history of the users,” explained deputy Ricardo Monreal in the gallery.
The reform also benefits consumers by guaranteeing them the right to cancel cards without penalty or hidden costs. Banks must offer in-person, telephone and digital mechanisms – including mobile applications and online banking – that allow the immediate blocking of the plastic and the definitive cancellation in a maximum of three business days.
In addition, any attempt to charge for the process, impose commissions or affect the user’s credit history will be expressly prohibited. Institutions must provide physical or digital proof of cancellation and refund any improper charges within a maximum period of five business days.
“If a consumer decides to cancel their card, the bank must do so without delays, without charges and without obstacles. The process will be free, fast and verifiable,” underlines the approved opinion.
Compliance monitoring will fall to the National Commission for the Protection and Defense of Users of Financial Services (Condusef) for banking entities, and to the Federal Consumer Protection Agency (Profeco) in the case of commercial issuers. Both institutions may apply sanctions in case of non-compliance.
According to Condusef data, last year more than 251 thousand complaints related to cards and personal credits were received in the country. The main complaints came from unacknowledged charges, improper commissions and difficulties canceling services. Of that total, 7,594 cases corresponded to unattended or ignored cancellations, which made this problem the seventh most frequent cause of complaints in the country.
With this reform, the aim is to balance the relationship between banks and consumers, providing effective tools to defend their rights and prevent abuses that directly affect the pockets of Mexican families.
The approved opinion was sent to the Senate of the Republic to continue its legislative process and, if ratified, it will come into force after its publication in the Official Gazette of the Federation.
“This reform protects the family economy and restores confidence in financial services. No user will have to pay for something they never asked for,” concluded Monreal.
For complaints about abuses against financial institutions, contact the Profeco Consumer Telephone: 55-5568-8722 and 800-468-8722. And to Condusef: 55-5340-0999.