Circular 2/2010 — Modification to the Rules for Direct Debit in Bank Deposit Accounts

Monday, January 18, 2010 OFFICIAL GAZETTE (First Section) 86

CIRCULAR 2/2010 Modification to the Rules for Direct Debit in Bank Deposit Accounts.

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

CIRCULAR 2/2010

TO CREDIT INSTITUTIONS:

SUBJECT: MODIFICATION TO THE RULES FOR DIRECT DEBIT IN BANK DEPOSIT ACCOUNTS

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, paragraphs sixth and seventh; 24 and 26 of the Bank of Mexico Law; 48 and 57 of the Credit Institutions Law; 16 and 22 of the Law for Transparency and Ordering of Financial Services; 8th, third and seventh paragraphs, 10, 12 in relation to Article 20 fraction IV; 14 in relation to Article 25 fraction II and 25 Bis 1 fraction V and 17 fraction I, which provide for the powers of the Bank of Mexico through the General Directorate of Central Banking Operations, the General Directorate of Financial System Analysis, and the Directorate of Central Banking Regulations to issue provisions, respectively, all of the Internal Regulations of the Bank of Mexico; as well as the Single Article of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions I, III and IV, with the objective of promoting the sound development of the financial system and considering the convenience to clarify:

a) That the payment of credits, loans, or financings, including revolving credits associated with credit cards, may be made through the direct debit service charged to a checking or savings deposit account, and

b) The manner in which credit institutions must make known and receive on the Internet the forms for applications for contracting the direct debit service, for cancellation, or to raise objections to charges related to said service.

It has resolved to modify the definitions of Direct Debit and Provider in section 1; sections 5.1 and 5.2; Annexes 1 and 2, as well as to add the definition of Credit in said section 1, all of Circular 23/2009 which contains the “Rules for Direct Debit in Bank Deposit Accounts”, published in the Official Gazette of the Federation on September 22, 2009, to read as follows:

1. DEFINITIONS

In singular or plural, for the purposes of these Rules, the following shall be understood:

“...

Credit: Credits, loans, and financings, as well as revolving credits associated with credit cards.

Direct Debit: The express acceptance of the Client for recurring charges to be made on their Account, relating to the payment of goods, services, or Credits.

Provider: The person who provides the good or service or grants the Credit, authorized by the Client to instruct charges on the Account.”

5. GENERAL PROVISIONS

“5.1 Credit institutions must make known the forms for applications for contracting the Direct Debit service, for its cancellation, or to raise objections to charges related to said service, contained in Annexes 1, 2, and 3, respectively, in their branches and on their electronic pages on the “Internet” in one of the sections through which the general public has access, as well as through the electronic banking service they provide to their Clients.

5.2 Credit institutions that offer the Direct Debit service must receive the applications referred to in the previous section 5.1, in their branches and through the electronic banking service they offer via the “Internet”, during public service hours, observing in this last case the applicable provisions regarding security, confidentiality, and integrity of information transmitted, stored, or processed through electronic means.”

Monday, January 18, 2010 OFFICIAL GAZETTE (First Section) 87

in this last case, the applicable provisions regarding security, confidentiality, and integrity of information transmitted, stored, or processed through electronic means.”

“ANNEX 1

Monday, January 18, 2010 OFFICIAL GAZETTE (First Section) 88

DIRECT DEBIT FORM ___ of ___________ of 20___.

I request that the payment subject of this authorization be directly debited based on the information indicated below:

1. Name of the Provider: _____________________________________________________________ .
2. Description of the good, service, or Credit to be directly debited: ______________________________________ .
3. Duration of the billing period (Example: weekly, bi-weekly, monthly, bimonthly, semi-annual, annual, etc.): _______________________________________________________________________ .
4. Name of the bank that holds the Account: ______________________________________________ .
5. Account identification data: Debit card number (16 digits): _______________________________________________, or Standardized Banking Key (“CLABE”) of the Account (18 digits): __________________________.
6. Maximum amount of each authorized charge per billing period: $________________.

OPTIONAL INFORMATION: Identification number generated by the Provider: Of the Client ____________________; Of reference ____________________; Of credit card ____________________, or Of contract ____________________.

I am aware that at any time I may request the bank holding my account to cancel the requested Direct Debit at no cost to me.

Sincerely,

---

(NAME OR BUSINESS NAME OF THE CLIENT)”

“ANNEX 2

Monday, January 18, 2010 OFFICIAL GAZETTE (First Section) 89

FORM TO CANCEL DIRECT DEBIT ___ of ______________ of 20___.

---

(NAME OF THE CREDIT INSTITUTION)

I request that your credit institution cancel the Direct Debit of the payment corresponding as follows:

1. Name of the Provider: _____________________________________________________________ .
2. Description of the good, service, or Credit, whose direct debit is requested to be cancelled: _______________ _________________________________________________________________________________ .
3. Account identification data: Debit card number (16 digits): _______________________________________________, or Standardized Banking Key (“CLABE”) of the Account (18 digits): __________________________ .

OPTIONAL INFORMATION: Identification number generated by the Provider: Of the Client ____________________; Of reference ____________________; Of credit card ____________________, or Of contract ____________________.

I am aware that the cancellation is at no cost to me and that it will take effect within a period not exceeding 3* business banking days counted from the date of presentation of this application.

• The maximum period to cancel direct debits for requests submitted before June 2, 2010, will be 10 business banking days.

Sincerely,

---

(NAME OR BUSINESS NAME OF THE CLIENT)”

TRANSITORY PROVISIONS

FIRST. This Circular shall enter into force on February 1, 2010.

SECOND. The provisions in sections 5.1 and 5.2 regarding the obligation of credit institutions to: i) make known on their electronic pages on the “Internet” through any section accessible to the general public as well as through the electronic banking service they provide to their Clients, the forms for applications for contracting the Direct Debit service, for its cancellation, or to raise objections to charges related to said service, and ii) receive said applications via the “Internet” through the electronic banking service, shall enter into force on April 5, 2010.

Mexico, D.F., January 13, 2010.- BANK OF MEXICO: The General Director of Central Banking Operations, David Aarón Margolín Schabes.- Signature.- The Director of Central Banking Regulations, Fernando Luis Corvera Caraza.- Signature.- The General Director of Financial System Analysis, José Gerardo Quijano León.- Signature.

For any inquiries regarding the content of this Circular, please contact the Department of Authorizations, Consultations, and Legal Control, located at Avenida 5 de Mayo number 2, sixth floor, Centro Neighborhood, Mexico City, D.F., C.P. 06059, or at the phones 5237.2308, 5237.2317, or 52372000 Ext. 3200.