The Financial Superintendency modified its Basic Legal Circular in relation to abusive clauses and practices of the entities they supervise.
And the entity has identified improper practices in credit cards, insurance contracts, leasing housing, long-term housing loans and insurance contracts.
Some of the new behaviors included in the list of abusive clauses and practices are:
- Link financial consumers or modify the conditions of the contract for opening a credit card with a variable interest rate without previously informing the consumer or explaining how their monthly payments will be affected.
- Not informing the validity of the conditions of pre-approved credits or modifying them unilaterally before disbursement.
- Restrict the prepayment of obligations or limit the assignment of the mortgage credit or the contract of leasing housing.
- Limit access to a product on the grounds of the financial consumer’s disability.
- Obstruct the cancellation of products through internal administrative procedures additional to those provided for by law or in the adhesion contract or by causing additional fees after the closure of the product has been requested.
- Establish that transactions in foreign currency or abroad by credit card will be settled with the exchange rate of the clearing date without determining it, or apply an exchange rate not previously informed to the financial consumer.
Download at the end of this note the circular in which the Superfinanciera makes these modifications to the Basic Legal Circular:
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**What impact do you think the Financial Superintendency’s modifications will have on the overall trust consumers have in financial institutions?**
As an editor for world-today-news.com, I would like to conduct an interview with two experts about the recent modification made by the Financial Superintendency in relation to abusive clauses and practices in credit cards, insurance contracts, leasing housing, long-term housing loans, and insurance contracts.
Guest 1: Carlos A., a financial advisor with extensive experience in advising clients on various financial products and services.
Guest 2: Maria T., a legal expert in consumer protection laws and regulations related to financial services.
Editor: Good day, Carlos and Maria. Thank you for joining me today. To begin with, can you tell us what the Financial Superintendency’s recent modification to the Basic Legal Circular means for consumers of financial services?
Carlos: The Financial Superintendency’s modification of the Basic Legal Circular aims to protect consumers from unfair practices and abusive clauses used by financial entities. It identifies certain behaviors as improper and prevents them from being included in contracts. This is a positive step towards ensuring that consumers are informed and treated fairly when entering into financial agreements.
Maria: Yes, I agree with Carlos. The modification is significant because it adds more clarity to the existing regulations and gives consumers more power to protect themselves against potential misconduct by financial institutions. By identifying specific practices as abusive, the Superintendency is able to hold these entities accountable for their actions and ensure that they adhere to the law.
Editor: That’s an excellent point. Can you share more about the specific behaviors that the Financial Superintendency has identified as abusive?
Carlos: Certainly. The list includes practices like linking variable interest rate credit cards to other products without informing the consumer, not providing clear information on pre-approved credit conditions, restricting prepayment of loans or lease agreements, blocking cancellations through unlawful procedures, and using unfair exchange rates for foreign transactions. These are all common practices that have caused problems for consumers in the past.
Maria: Exactly. The new guidelines aim to address these issues and provide a clear framework for financial institutions to follow. It’s essential to have clear communication and transparency between consumers
