Regulatory Alerts2015-05-20 | JB-2015-3428Resolution No. JB-2015-3428 of the Banking Board
The Banking Board of Ecuador rejected an appeal filed by Banco de Guayaquil S.A. and confirmed the administrative order requiring the cancellation of debts incurred by unauthorized third-party use of a stolen credit card. The Board determined that the bank failed to fulfill its regulatory obligation to verify merchant signature compliance, thereby establishing a procedural error that caused harm to the cardholder. Consequently, the decision mandates the removal of negative credit reporting associated with the fraudulent transactions from the National Public Data Registry.
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