2008-08-04 | Circular 34/2008

Added

Circular 34/2008 — Modifies Circular 27/2008

The Bank of Mexico modifies the General Rules for Credit Information Societies and their users by amending Rule Eighth to allow the delivery of credit reports to users making credit offers to individual clients without a prior legal relationship, provided the clients authorize the report verbally or electronically and the user provides detailed written terms of the offer. Additionally, a Third Transitory Provision is added, requiring societies to eliminate information corresponding to outstanding principal balances until users provide a breakdown of such amounts, replacing it with the total debt amount labeled as "Current Balance." These changes enter into force the day after publication in the Official Gazette.

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Monday, August 4, 2008 OFFICIAL GAZETTE (First Section) 1

CIRCULAR 34/2008 regarding the modifications to the General Rules to which the operations and activities of credit information societies and their users must be subject.

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

CIRCULAR 34/2008

TO CREDIT INFORMATION SOCIETIES:

SUBJECT: MODIFICATIONS TO THE GENERAL RULES TO WHICH THE OPERATIONS AND ACTIVITIES OF CREDIT INFORMATION SOCIETIES AND THEIR USERS MUST BE SUBJECT

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 of the Bank of Mexico Law; 12, 23, and 28 of the Law to Regulate Credit Information Societies; 22 of the Law for Transparency and Orderly Conduct of Financial Services; 8th, third and sixth paragraphs, 10, 17 fraction I, and 25 fraction II, which provide for the attribution of the Bank of Mexico through the Central Banking Regulations Directorate and the Financial System Analysis Directorate, respectively, to issue provisions, all of the Internal Regulations of the Bank of Mexico; Unique, fractions III and IV of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, and with the objective of promoting the sound development of the financial system, has resolved to make adjustments to the "General Rules to which the operations and activities of Credit Information Societies and their Users must be subject," in order to promote their adequate compliance, modifying Rule Eighth, first paragraph, and adding the Third Transitory Provision, to read as follows:

GENERAL RULES TO WHICH THE OPERATIONS AND ACTIVITIES OF CREDIT INFORMATION SOCIETIES AND THEIR USERS MUST BE SUBJECT

CHAPTER III

On Credit Reports

"EIGHTH.- In the case of Users who intend to make credit offers to Individual Clients with whom they do not maintain a legal relationship, the Societies, in terms of what is provided in Article 28 of the Law, may deliver Credit Reports to said Users when these have the authorization of the Clients granted verbally or by electronic means, provided that previously the Users inform said Societies in writing in detail the terms and conditions of the credit offer in question, as well as the other information that the Societies require from them.

. . ."

TRANSITORY PROVISIONS

"THIRD.- Until such time as the Societies receive from the Users information in which the amount corresponding to the outstanding principal balances referred to in Rule Twelfth is broken down, they must eliminate the information corresponding to it, considering for this purpose the total amount of the debt designated as 'Current Balance'."

TRANSITORY PROVISION

UNIQUE. This Circular shall enter into force the day following its publication in the Official Gazette of the Federation.

Monday, August 4, 2008 OFFICIAL GAZETTE (First Section) 2

Mexico, D.F., July 31, 2008.- BANK OF MEXICO: The Director of Financial System Analysis, Pascual Ramón O’Dogherty Madrazo.- Signature.- The Director of Central Banking Regulations, Fernando Luis Corvera Caraza.- Signature.

For any inquiries regarding the content of this Circular, please contact the Authorization, Consultations, and Legal Control Department, located at Avenida 5 de Mayo number 2, sixth floor, Centro Neighborhood, Mexico City, D.F., C.P. 06059, or at telephone numbers 5237.2308, 5237.2317, or 5237.2000 Ext. 3200.

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