Circular 22/2020 — Provisional Measures Regarding Minimum Payment Amounts for Revolving Credit, Loans, or Financing Associated with Credit Cards in Relation to the COVID-19 Pandemic

Tuesday, June 2, 2020 OFFICIAL GAZETTE 155

BANK OF MEXICO

CIRCULAR 22/2020 addressed to Multiple Banking Institutions, Regulated Multiple-Object Financial Societies maintaining equity links with Credit Institutions, Unregulated Multiple-Object Financial Societies, Regulated Multiple-Object Financial Societies maintaining equity links with entities other than Credit Institutions, Popular Financial Societies with Operation Level IV, under the Savings and Popular Credit Law, Community Financial Societies with Operation Level IV, under the Savings and Popular Credit Law, Savings and Loan Cooperative Societies with Operation Level IV, under the Savings and Popular Credit Law, Financial Entities acting as trustees in trusts granting credit or financing to the public, and Development Banking Institutions, that issue credit cards, regarding provisional measures on minimum payment amounts applicable to revolving credits, loans, or financing associated with credit cards, in relation to the COVID-19 pandemic.

A logo appears on the margin, stating: Bank of Mexico.- "2020, Year of Leona Vicario, Meritorious Mother of the Fatherland".

CIRCULAR 22/2020

TO MULTIPLE BANKING INSTITUTIONS, REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES MAINTAINING EQUITY LINKS WITH CREDIT INSTITUTIONS, UNREGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES, REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES MAINTAINING EQUITY LINKS WITH ENTITIES OTHER THAN CREDIT INSTITUTIONS, POPULAR FINANCIAL SOCIETIES WITH OPERATION LEVEL IV, UNDER THE SAVINGS AND POPULAR CREDIT LAW, COMMUNITY FINANCIAL SOCIETIES WITH OPERATION LEVEL IV, UNDER THE SAVINGS AND POPULAR CREDIT LAW, SAVINGS AND LOAN COOPERATIVE SOCIETIES WITH OPERATION LEVEL IV, UNDER THE SAVINGS AND POPULAR CREDIT LAW, FINANCIAL ENTITIES ACTING AS TRUSTEES IN TRUSTS GRANTING CREDIT OR FINANCING TO THE PUBLIC, AND DEVELOPMENT BANKING INSTITUTIONS, THAT ISSUE CREDIT CARDS:

SUBJECT: PROVISIONAL MEASURES ON MINIMUM PAYMENT AMOUNTS APPLICABLE TO REVOLVING CREDITS, LOANS, OR FINANCING ASSOCIATED WITH CREDIT CARDS, IN RELATION TO THE COVID-19 PANDEMIC.

The Bank of Mexico, with the purpose of continuing to promote the sound development of the financial system, protect the interests of the public, and foster the proper functioning of payment systems, as well as to provide legal certainty to financial entities subject to the Credit Card Rules and the Provisions for the Determination of Minimum Payment for Credit Cards (hereinafter, jointly, the Provisions on Cards), issued by this Central Bank through Circulares 34/2010 and 13/2011, published in the Official Gazette of the Federation on November 12, 2010, and June 3, 2011, respectively, as modified by subsequent resolutions (hereinafter, for the purposes of this Circular, the Financial Entities), given the circumstances derived from the COVID-19 pandemic and the way it has developed in recent dates, has resolved to modify the exception to what is stated in the Provisions on Cards that was established through Circular 13/2020, published in the Official Gazette of the Federation on April 17 of this year, under the following terms:

The minimum payment amounts that Financial Entities, in compliance with what is provided in article 18 Bis 7 of the Law for the Transparency and Ordering of Financial Services, are obligated to charge regarding revolving credits, loans, or financing associated with cards, will be those that, in accordance with the calculation provided in the Provisions on Cards, correspond to the payment periods that become applicable from October 2020 onwards. Consequently, Financial Entities will not be obligated to collect the corresponding minimum payment amounts calculated in accordance with the Provisions on Cards, for the payment periods comprised between April and September of this year, when they so determine and agree with the respective clients.

Financial Entities that implement schemes applicable to revolving credits, loans, or financing associated with cards that, in turn, include exceptions to the collection of the minimum payment amount in accordance with what is established in this Circular, must make known to their cardholders the terms and conditions of such schemes, from the date of their implementation, through their respective internet portals accessible to the general public, as well as through their telephone call centers. Additionally, Financial Entities must make the aforementioned information known in the account statements of the respective revolving credits, loans, or financing subject to this Circular, which they issue, no later than the second billing cycle following the date on which they have implemented the respective payment benefit scheme. As an exception to the foregoing, Financial Entities, instead of including the aforementioned information in the account statements, must specify in such account statements that this information is available on the public internet site specified therein.

Furthermore, with respect to cardholders who have agreed to adhere to the aforementioned schemes, Financial Entities must make known to them the terms and conditions under which such cardholders will have to make the corresponding payments, once the term of the respective scheme under which the collection of the minimum payment referred to in the preceding paragraph has been exempted has elapsed. For these purposes, Financial Entities must make the aforementioned terms and conditions known on the internet sites or computer applications through which they allow the respective cardholders to consult their account statements and transactions made with the corresponding cards, as well as through their telephone call centers. Additionally, Financial Entities must include the information referred to in this paragraph in the account statement they issue, no later than the second billing cycle following the date on which the respective cardholder has adhered to the payment benefit scheme or, instead of including such information in such account statements, Financial Entities must specify that this information is available on the internet site and computer applications specified therein.

Without prejudice to the foregoing, Financial Entities may use means other than those indicated in the preceding paragraphs, in order to make known to their cardholders such terms and conditions, provided that they are used in addition to the aforementioned communication channels and not in substitution of them.

Financial Entities may not charge, during the period referred to in this Circular, to those cardholders who have agreed to adhere to the aforementioned schemes, fees for non-compliance with the payment of the aforementioned minimum amounts or moratory interest related to such non-compliance.

The foregoing shall proceed without prejudice to the other obligations and conditions that Financial Entities must observe in accordance with applicable provisions and other provisional measures established by competent financial authorities, including those corresponding to special accounting criteria related to the same credits, loans, and financing referred to in this Circular, issued by the National Banking and Securities Commission due to the impacts on borrowers caused by the COVID-19 pandemic.

This resolution is issued based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 and 26, of the Bank of Mexico Law, 4, 4 Bis, 18 Bis 7 and 22, of the Law for the Transparency and Ordering of Financial Services, 1, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 14 Bis, first paragraph, 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 Second, fractions I and X of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico.

TRANSITORY SINGLE.- This Circular shall enter into force on the day of its publication in the Official Gazette of the Federation.

Tuesday, June 2, 2020 OFFICIAL GAZETTE 157

From the entry into force of this Circular, what is provided in Circular 13/2020, published in the Official Gazette of the Federation on April 17, 2020, shall be without effect.

Mexico City, May 25, 2020.- BANK OF MEXICO: The General Legal Director, Luis Urrutia Corral.- Signature.- The General Director of Financial System Affairs, José Luis Negrín Muñoz.- Signature.

For any inquiries regarding the content of this Circular, the Bank of Mexico places itself at your disposal through the Directorate of Authorizations and Sanctions of Central Banking at telephone number (55) 5237-2000 extension 3200.