The credit card is an American invention that has spread all over the world. The expression “credit card” was coined by the American writer Edward Bellamy (1850-1897) in his utopian socialist novel "Looking Backward" (1887). The increase in the use of credit cards has been due to the demand that users have to become consumers.
This Credit Card Law amendment is intended to benefit cardholders in the following ways:
1. They will be able to demand a payment arrangement when cancelling a credit card, forcing the bank or issuer to resolve in 5 days, passing the balance owed to date, to a personal loan.
2. Phone calls and text messages promoting products to be offered to the cardholder will be prohibited, without the prior authorization of the customer.
3. The bank or credit card issuer, will mandatorily notify the change of interest rates before applying them to their customers, giving them the option to determine to cancel their credit cards or to accept the increase.
4. Eliminate provisions in contracts that establish charges or penalties for cancellation of contract, credit management, overdraft, issue, printing, collection management, renewal or expiration, replacement for damage or theft or any additional charges similar to these.
5. Eliminate charges for lack of monthly use of the credit card. (Now-a-days, many credit card issuers require the credit card holders to use their card at least 3 times a month to avoid incurring surcharges.)
The Amendment was approved by the National Congress with exemption from two debates and unanimously, on July 19, 2017, it is pending publication in the Official Newspaper "La Gaceta" and will be in force 60 days after it is published.
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Author: Monica Triminio