Regulatory Alerts2010-01-18 | Circular 4/2010Added
Circular 4/2010 — Modification to the Rules Governing the Issuance and Operation of Credit Cards
The Bank of Mexico amends section 2.10 of the Rules Governing the Issuance and Operation of Credit Cards to require that credit card payment agreements via direct debit from checking or savings accounts comply with the Bank of Mexico's Rules on Direct Debit in Bank Deposit Accounts. Credit card issuers are mandated to inform cardholders, via their website, contract, or statement, that payments can be made through other credit institutions. This modification becomes effective on February 1, 2010.
Monday, January 18, 2010 OFFICIAL GAZETTE (First Section) 86
CIRCULAR 4/2010 Modification to the Rules to which the issuance and operation of credit cards shall be subject.
At the margin, a logo that says: Bank of Mexico.
CIRCULAR 4/2010
TO CREDIT INSTITUTIONS, LIMITED OBJECT FINANCIAL COMPANIES, AND MULTIPLE OBJECT FINANCIAL COMPANIES REGULATED:
SUBJECT: MODIFICATION TO THE RULES TO WHICH THE ISSUANCE AND OPERATION OF CREDIT CARDS SHALL BE SUBJECT
The Bank of Mexico, based on what is provided in Article 28 of the Political Constitution of the United Mexican States, paragraphs sixth and seventh; Articles 24, 26, and 35 of the Bank of Mexico Law; Article 22 of the Law for Transparency and Orderly Regulation of Financial Services; Articles 48, 72 Bis, and 103 fraction IV of the Credit Institutions Law; Article 8 of the Monetary Law of the United Mexican States; Article 8, paragraphs third and sixth; Article 10, paragraph first; Article 14, paragraph first in relation to Article 25 fraction II; Article 25 Bis 1 fraction V; and Article 17 fraction I, which grant the Bank of Mexico the authority to issue provisions through the General Directorate of Financial System Analysis and the Directorate of Central Banking Provisions, respectively, all of the Internal Regulations of the Bank of Mexico, as well as the Single Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, fractions III and IV, with the objective of promoting the sound development of the financial system and protecting the interests of the public, considering that on January 13, 2010, Circular 2/2010 was issued, in which the “Rules on Direct Debit in Bank Deposit Accounts” were modified, has resolved to modify section 2.10 of the “Rules to which the issuance and operation of credit cards shall be subject,” to read as follows:
- GENERAL PROVISIONS
“2.10. In the event that the Cardholder agrees with the Issuer that payments to the Account shall be made through the direct debit service charged to a checking or savings account at any credit institution or entity, it shall be subject to what is provided in the “Rules on Direct Debit in Bank Deposit Accounts” issued by the Bank of Mexico.
The Issuer shall inform the Cardholder, through its Internet website, as well as through the Contract or the account statement, that it may direct debit its payments at other credit institutions, in accordance with this section.”
TRANSITORY
SINGLE. This Circular shall enter into force on February 1, 2010.
Mexico, D.F., January 14, 2010.- BANK OF MEXICO: The General Director of Financial System Analysis, José Gerardo Quijano León.- Signature.- The Director of Central Banking Provisions, Fernando Luis Corvera Caraza.- Signature.
Monday, January 18, 2010 OFFICIAL GAZETTE (First Section) 87
For any inquiries regarding the content of this Circular, please contact the General Directorate 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 telephone numbers 5237.2308, 5237.2317, or 52372000 Ext. 3200.