Regulatory Alerts2018-10-29 | Circular 15/2018Added
Circular 15/2018 — Modifications to Circular 3/2012 (Use of Labor Benefits as Collateral for Financial Services Contracted by Workers)
This circular modifies Circular 3/2012 to establish a regulatory framework for payroll-linked financial services, introducing new definitions for terms such as "Payroll-Linked Credit" and "Ordering Account." It mandates that depositary institutions allow account holders to designate credits from any institution for automatic deduction, subject to a cap where total monthly charges cannot exceed 40% of the average monthly payroll deposits, with revolving credits limited to 10%. The document also outlines specific procedures for identifying ordering accounts, managing credit portability between institutions, and canceling transfer services to protect worker resources.