Regulatory Alerts2007-11-30 | Circular 15/2007Added
Circular 15/2007 — Total Annual Cost (CAT)
The Bank of Mexico establishes the general provisions, definitions, and methodology for calculating the Total Annual Cost (CAT) for credit operations. Financial institutions must apply this calculation to credits below 900,000 UDIS and all guaranteed housing credits, while excluding specific commercial instruments and large corporate credits. The regulation mandates the inclusion of the CAT in advertising and adhesive contracts, requiring institutions to estimate the total amount payable and disclose the CAT in pre-approved credit offers.