Circular 23/2009 — Direct Rules for Bank Deposit Account Domiciliation

Tuesday, September 22, 2009 OFFICIAL GAZETTE (First Section) 86

CIRCULAR 23/2009 Direct Rules for Domiciliation in Bank Deposit Accounts.

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

CIRCULAR 23/2009

TO CREDIT INSTITUTIONS:

SUBJECT: RULES FOR DOMICILIATION IN BANK DEPOSIT ACCOUNTS

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 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 sixth paragraphs, 10, 12 in relation to Article 20 fraction IV, 17 fraction I and 25, fraction V, which provide for the powers of the Bank of Mexico through the General Directorate of Central Bank Operations, the Directorate of Central Bank Regulations, and the Directorate of Financial System Analysis to issue regulations, respectively, all of them of the Internal Regulations of the Bank of Mexico; as well as, the Single Article of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, fractions I, III and IV; and with the object of promoting the sound development of the financial system, as well as protecting the interests of the public, considering that:

a) The Credit Institutions Law empowers the Bank of Mexico to establish the procedure and requirements that must be met to object to charges that credit institutions have made in connection with the domiciliation of payments for goods or services, as well as the term in which the cancellation of authorizations granted by clients will take effect, and

b) To the extent that a clear and expeditious procedure is available to object to the charges referred to in the preceding subsection, the protection of the interests of the public and the sound development of the financial system are provided.

It has resolved to issue the following:

RULES FOR DOMICILIATION IN BANK DEPOSIT ACCOUNTS

1. DEFINITIONS

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

Client Bank: The credit institution that holds the Account. Provider Bank: The credit institution that, at the request of the Provider, instructs the Client Bank to charge the Account. Client: The holder of an Account. Account: The records of charges or credits related to a checking or savings deposit contract. Domiciliation: The express acceptance by the Client to have recurring charges made on their Account, related to the payment of goods or services. Provider: The person authorized by the Client to instruct charges on the Account.

2. FORMATS FOR DOMICILIATION

Credit institutions offering the Domiciliation service must attend to requests for its contracting, in accordance with section 5 and by using the format established in Annex 1 of these Rules.

The Provider Bank must agree with Providers that when they receive the respective request, they must collect at least the information indicated in the aforementioned Annex 1 of these Rules.

3. CANCELLATION OF DOMICILIATION

3.1 Submission of the request

The Client Bank must attend to requests for cancellation of the Domiciliation presented to it, in accordance with section 5 and by using the format established in Annex 2 of these Rules. This is regardless of whether the Client had authorized the Domiciliation through the Provider or that the means used to authorize it was different from that used to formulate the cancellation request.

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through the Provider or that the means used to authorize it was different from that used to formulate the cancellation request.

3.2 Effects of cancellation

The cancellation will take effect within a period not exceeding three business banking days counted from the date the Client Bank receives the request.

Once the cancellation takes effect, the Client Bank must refrain from making charges on the Account related to said Domiciliation.

4. PROCEDURE TO OBJECT TO CHARGES

4.1 Submission of the objection

The Client Bank must attend to objection requests presented to it, in accordance with section 5 and by using the format established in Annex 3 of these Rules.

Objections may be submitted within a period of ninety natural days counted from the last day of the statement period in which the charge subject of the objection appears.

4.2 Admissibility of the objection

When the Client objects to a charge during the first sixty natural days of the period indicated in section 4.1 above, the Client Bank must credit the claimed amount no later than the next business banking day after receipt of the objection, without being able to require the Client to perform any additional procedure.

If the objection is made between day sixty-one and day ninety of the aforementioned period, the Client Bank must resolve on the admissibility of the claim within a maximum period of twenty natural days and, in case the objection is found admissible, credit the claimed amount no later than the next business day after the date of resolution.

4.3 Inadmissibility of the objection

In case the objection is found inadmissible according to what is stated in the second paragraph of section 4.2 above, the Client Bank must make available to the Client the printed original of the resolution signed by authorized personnel, as well as a copy of the respective supporting documents or evidence, including that provided by the Provider in question, at the branch where the objection was presented or at the one they have agreed upon for such effect. Additionally, it must send a copy of said resolution via email when the Client has presented the objection through the electronic page that the Client Bank has on the worldwide web (Internet) or when so requested when presenting the objection.

5. GENERAL PROVISIONS

5.1 Credit institutions must make known the formats for requests for contracting the Domiciliation service, its cancellation, or to make objections to charges related to said service, contained in Annexes 1, 2, and 3, respectively, in their branches and on their electronic pages on “Internet”.

5.2 Credit institutions offering the Domiciliation service must receive the requests referred to in section 5.1 above, in their branches and through “Internet”, during public service hours.

In addition to the above, credit institutions may receive such requests through other electronic, optical, or any other technology means previously agreed upon with their Clients. In case such requests are made by telephone, they must collect at least the information indicated in the aforementioned Annexes 1, 2, and 3, as applicable.

In no case may credit institutions request additional information, documentation, or procedure other than those established in these Rules to attend to the aforementioned requests, except for what is necessary to identify the Client.

5.3 The Client Bank must keep a record of the date it receives the request for Domiciliation, cancellation, or objection to charges and acknowledge receipt with at least the number identifying the request and the date of receipt. The acknowledgment of receipt must be made through the same medium in which the request in question is presented.

5.4 The Client Bank may not charge commissions for processing and resolving objections that are found admissible, nor for canceling the Domiciliation.

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5.5 Credit institutions must adhere to the “Manual for Domiciliation of Receipts of the Electronic Clearing House” to resolve controversies that may arise regarding charges related to the Domiciliation service.

ANNEX 1

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FORMAT FOR DOMICILIATING THE PAYMENT OF GOODS OR SERVICES

___ of ___________ of 20___.

I request that the payment of the good or service subject of this authorization be domiciled based on the information indicated below:

1. Name of the Provider: _________________________________________________________.
2. Description of the good or service to be domiciled: _______________________________________.
3. Duration of the billing period (Example: weekly, bi-weekly, monthly, bimonthly, semi-annual, annual, etc.): _______________________________________________________________________.
4. Name of the Bank that holds my 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: Client _____________; Reference _____________, or Contract _____________.

I am aware that at any time I can ask the bank holding my account to cancel the requested Domiciliation at no cost to me.

Sincerely,

---

(NAME OR BUSINESS NAME OF THE CLIENT)

ANNEX 2

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FORMAT FOR CANCELING DOMICILIATION

___ of ____________ of 20___.

---

(NAME OF THE CREDIT INSTITUTION)

I request that your credit institution cancel the Domiciliation of the payment of the goods or services corresponding as follows:

1. Name of the Provider: _______________________________________________________.
2. Description of the good or service whose domiciliation is requested to be canceled __________________________________________________________________.
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: Client ___________; Reference ___________, or 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 request.

*The maximum period to cancel the domiciliation of requests presented before June 2, 2010, will be 10 business banking days.

Sincerely,

---

(NAME OR BUSINESS NAME OF THE CLIENT)

ANNEX 3

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FORMAT TO OBJECT TO CHARGES FOR DOMICILIATION

___ of ___________ of 20___.

---

(NAME OF THE CREDIT INSTITUTION)

I request that your credit institution return the charge of $_________ made on day ___ of ___________ of 20__, to the Account identified with the number: ________________ (16 digits of the debit card or 18 digits of the Standardized Banking Key (“CLABE”)).

Regarding this, I declare that:

(* Mark with an X the corresponding option)

____* I did not authorize the charge. ____* The charge amount exceeds the amount I authorized. ____* The authorization was canceled prior to the making of the charge. _* Duplicate charge, made on days __ and ___ of ___________ of 20.

I am aware that this objection will have no cost when resolved in my favor. Likewise, I am aware that if it is resolved against me and that institution intends to charge for the management, the charge may not exceed: $ _______.

OPTIONAL INFORMATION: Additional comments: ______________________________________________________. Email address to receive the response: ______________________________________. Identification number generated by the Provider: Client ___________, Reference ___________, or Contract ___________.

Sincerely,

---

(NAME OR BUSINESS NAME OF THE CLIENT)

TRANSITORY PROVISIONS

FIRST. This Circular will enter into force on December 1, 2009.

SECOND. From the entry into force of this Circular until June 1, 2010, requests for cancellation of Domiciliation will take effect within a period not exceeding ten business banking days counted from the date the Client Bank receives the request.

Mexico, D.F., September 18, 2009.- BANK OF MEXICO: The Director General of Central Bank Operations, David Aarón Margolín Schabes.- Rubric.- The Director of Central Bank Regulations, Fernando Luis Corvera Caraza.- Rubric.- The Director of Financial System Analysis, Pascual Ramón O’Dogherty Madrazo.- Rubric.

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

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