Regulatory Alerts2015-04-27 | Circular 9/2015Added
Circular 9/2015 — Modifications to Circular 21/2009 (Annual Total Cost)
The Bank of Mexico modifies the methodology, formula, components, and assumptions for calculating and advertising the Annual Total Cost (CAT) for credit products. The amendment introduces definitions for Revolving Credit and Minimum Payment, updates calculation rules for guarantees and optional commissions, and establishes specific CAT calculation assumptions for revolving credit products, including standardized credit line amounts in UDIS for advertising. The modified provisions enter into force on October 26, 2015, allowing previously calculated CAT values in existing contracts and printed advertising to remain valid until contract conclusion or advertising expiration, while electronic advertising must comply with the new rules immediately.
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