On March 7, 2016 the Credit Card Law, Decree 7-2015 of the Congress of the Republic of Guatemala will come into force.
The purpose of the Credit Card Law is to set up the legal framework under which the operations through credit cards (credit operations and sales transactions made through credit cards) and the relationships between issuers, operators, cardholders and affiliates are regulated.
The Credit Card Law specifically regulates the following matters:
- Contractual: Provides the content of contracts between the issuer and the cardholder; and between the issuer or operator and the affiliate, as well as the form and content requirements that must be met by such contracts.
- Financing: Sets a maximum interest rate on financing granted by credit cards and prohibits the capitalization of interest and fees or additional services charges.
- Rights and obligations: Provides the rights and obligations of the parties involved in the operation and use of credit cards.
- Crimes: Defines the elements of the crimes related to the cloning of credit cards, the use of cloned credit cards, the fraudulent use of credit cards, fraud through credit cards and handling of credit card data.