Circular 10/2011 — Modification of Credit Card Rules

Tuesday, May 10, 2011 OFFICIAL GAZETTE (First Section) 96

CIRCULAR 10/2011, addressed to Multiple Banking Institutions, Limited Purpose Financial Societies and Regulated Multiple Purpose Financial Societies regarding the Modification to the Credit Card Rules.

A logo appears at the margin, stating: Bank of Mexico.

CIRCULAR 10/2011

TO MULTIPLE BANKING INSTITUTIONS, LIMITED PURPOSE FINANCIAL SOCIETIES AND REGULATED MULTIPLE PURPOSE FINANCIAL SOCIETIES:

SUBJECT: MODIFICATION TO THE CREDIT CARD RULES

The Bank of Mexico, taking into account the problems that various institutions face in adapting their computing systems to calculate the minimum payment on credit cards, as well as the request of the Mexican Bank Association A.C., to the effect that to resolve said problem, the entry into force of the transitional regime applicable to determine said minimum payment should be uniform without distinguishing based on the issuance date of such cards, deems it convenient in order to promote the sound development of the financial system, to modify the "Credit Card Rules" contained in Circular 34/2010, in order to reform the aforementioned transitional regime.

For the above reason, based on what is provided in Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 and 26 of the Bank of Mexico Law; 18 Bis 7 and 22 of the Law for Transparency and Ordering of Financial Services; 48, 48 Bis 2 and 103, penultimate paragraph, of the Credit Institutions Law; 4th first paragraph, 8th fourth and seventh paragraphs, 10 first paragraph, 14 Bis in relation to 17 fraction I, and 14 Bis 1 first paragraph in relation to 25 Bis 1 fraction IV, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Legal Directorate and the General Directorate of Financial System Affairs, respectively, as well as the Unique Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, fractions III and XII, it has resolved to modify the Second Transitional Rule of the aforementioned Circular 34/2010 effective the day following the publication of this Circular in the Official Gazette of the Federation, to read as follows:

TRANSITIONAL

"SECOND. The percentages to determine the Minimum Payment established in subparagraphs a) and b) of Rule 4.1, shall enter into force in accordance with the following:

a) The percentage referred to in subparagraph a):

i. From January 3, 2011 to January 3, 2012, it shall be 0.5; ii. From January 4, 2012 to January 3, 2013, it shall be 1.0, and iii. Starting January 4, 2013, it shall be 1.5, as provided in said subparagraph.

b) The percentage of 1.25 provided in subparagraph b) shall enter into force on January 4, 2013.

Issuers may determine a Minimum Payment higher than that corresponding in accordance with what is established in this Transitional Rule."

Mexico City, May 6, 2011.- BANK OF MEXICO: The General Director of Financial System Affairs, José Gerardo Quijano León.- Signature.- The General Legal Director, Héctor Reynaldo Tinoco Jaramillo.- Signature.

For any inquiries regarding the content of this Circular, please contact the Authorization, Consultations and Legal Control Department, located at 5 de Mayo Avenue number 2, third floor, Centro Neighborhood, Mexico City, C.P. 06059, or at telephone numbers 5237.2308, 5237.2317 or 5237.2000 Ext. 3200.

Tuesday, May 10, 2011 OFFICIAL GAZETTE (First Section) 97