Regulatory Alerts2010-04-20
Communications - Revolving credit granted with credit cards: safeguards and guidelines for operators
The Bank of Italy issued this communication to address numerous anomalies found during supervisory checks on revolving credit granted via credit cards, requiring intermediaries to strictly adhere to civil, usury, transparency, and correctness regulations. The document mandates that banks ensure accurate interest calculations, obtain explicit customer consent before issuing cards or selling insurance, and restrict the promotion of revolving credit to licensed financial agents rather than retail partners. Intermediaries are required to implement robust internal controls and organizational safeguards to guarantee maximum transparency and correctness in client relationships, with the supervisory authority reserving the right to impose sanctions for non-compliance.