Protection of Users of Financial Services: Adjustments

2017 - YEAR OF RENEWABLE ENERGIES

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 6279
19/07/2017

TO THE FINANCIAL INSTITUTIONS,
TO THE EXCHANGE HOUSES, AGENCIES AND OFFICES,
TO THE NON-FINANCIAL COMPANIES ISSUING CREDIT CARDS, TO THE TRUSTEES OF FINANCIAL TRUSTS COMPRISED IN THE FINANCIAL ENTITIES ACT, TO THE NON-FINANCIAL COMPANIES ISSUING PURCHASE CARDS:

Ref.: Circular
RUNOR 1 - 1300

"Protection of users of financial services". Adjustments.

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We are writing to inform you that this Institution adopted the following resolution:

"1. Replace points 1.2., 2.5., 3.1.1.6., 3.1.1.7., the heading of point 3.1.3. and points 3.2.1., 4.5., 4.6., 5.1., 5.2., 5.2.1. and 5.2.2. of the rules on "Protection of users of financial services" with the following:

"1.2. General criteria and supervision.

Obligated subjects shall consider and resolve with reasoned grounds, taking into account the basic rights set forth in Section 2. and the rules applicable to the operations involved, the complaints raised by users of such services in relation to the services they offer and/or provide.

The Central Bank of the Argentine Republic shall supervise the conduct of the obligated subjects, to whom the provisions of Section 6. shall apply in the event of non-compliance with these rules."

…

"2.5. Information to the Central Bank of the Argentine Republic.

Financial institutions and non-financial companies issuing credit and/or purchase cards that offer and market products and/or services that are perfected by signing or accepting contracts with pre-established clauses (adhesion contracts) shall report the commissions and charges they charge users of financial services through the reporting system established for that purpose.

New commissions –for new products and/or services they wish to market– and increases in commissions they wish to implement must be previously reported through the channel set forth in the preceding paragraph, and may only be notified to those users of financial services after thirty (30) consecutive days have elapsed since the date of information to the BCRA. They shall also report modifications to the charges.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Reductions in commissions and/or charges may be applied without delay, without prejudice to the fact that they must be reported to the BCRA within the following thirty (30) consecutive days from their application."

…

"3.1.1.6. Administer and keep updated: (i) the Centralized Register of Inquiries and Complaints (RCCR) referred to in point 3.1.3; (ii) the Register of Refunds of Amounts (RRI) provided for in point 3.1.X. and (iii) the Register of Complaints before Judicial and/or Administrative Consumer Defense Instances (RDJA) established in point 3.1.Y., acting in coordination –where applicable– with the personnel representing it at the zonal or branch level.

3.1.1.7. Prepare and submit to the Board of Directors or equivalent authority, with a periodicity of at least quarterly, a report on: (i) the inquiries and complaints received; (ii) the interventions required by complaints processed before the judicial and/or administrative consumer defense instances that are competent and (iii) the refunds of amounts made. The report shall set out, as applicable, a breakdown by the following criteria: type of issues that give rise to them, quantities, amounts involved, the products and branches involved, and average resolution times. In addition, they shall contain comparative statistics with respect to previous periods and –where applicable– corrective proposals."

…

"3.1.3. Centralized Register of Inquiries and Complaints (RCCR)."

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"3.2.1. Of the obligated subjects.

The Board of Directors or equivalent authority shall evaluate the reports submitted to it by the person responsible for user service of financial services in accordance with point 3.1.1.7.

At least once a year, the User Service of Financial Services and the processes implemented to comply with the obligations established in these rules shall be subject to a comprehensive evaluation and written report by the internal audit.

As part of said evaluation and/or as a complement thereto, the internal audit shall verify the following:

• that users of financial services are provided with a copy of the forms they sign and copies of the contracts formalized with the obligated subject, in the time and form provided;

• that they have been notified in the body of the contract of the items for which commissions and charges will be applied to them for the products or services they contract and of the respective amounts or percentages, as well as of their rights and obligations arising from the contract, including the right of revocation;

• that users of financial services have been notified in the contract of
  the conditions that may be subject to modification, as well as of the right of termination by both the user and the obligated subject;

• that the commissions and charges applied to users of financial services
  comply with the provisions of point 2.3.2.; and

• that the Centralized Registers of Inquiries and Complaints (RCCR), of Refunds
  of Amounts (RRI) and of Complaints before Judicial and/or Administrative Consumer Defense Instances (RDJA) are properly administered and upda- ted in accordance with the requirements set forth in these rules."

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"4.5. That cases of failure to respond by obligated subjects or of disagreement with the resolutions adopted by them may be reported by users of financial services to the Central Bank of the Argentine Republic."

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"4.6. To inform that the Central Bank of the Argentine Republic has a User Protection Area for Financial Services that can be contacted by entering www.usuariosfinancieros.gob.ar.”.

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“5.1. Inquiries, suggestions and complaints.

The Main Management of User Protection for Financial Services shall provide a response through the enabled channels to the public's inquiries regarding the regulations issued by the Institution and the information published on its institutional Internet website, providing guidance to users of financial services on how to channel complaints regarding the conduct of the subjects provided for in point 1.1.2.

Comments, suggestions and complaints regarding the conduct of the obligated subjects will also be received from users of financial services – through the same channel –.”

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“5.2. Unanswered complaints or complaints with unsatisfactory responses.”

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“5.2.1. When the user of financial services receives a response from the entity that they do not consider satisfactory, or when twenty (20) business days have elapsed since the moment they submitted their complaint to the obligated subject without having received any response, they may inform the Central Bank of the Argentine Republic of what occurred – through any of the enabled channels – by submitting a filing that meets the following requirements:

5.2.1.1. It must be addressed to the Main Management of User Protection for Financial Services or through the electronic channels enabled for this purpose on the institutional Internet website of the Central Bank of the Argentine Republic, submitted by the user, their legal representative or attorney-in-fact.

5.2.1.2. Indicate name, surname, valid identification document number
– in accordance with the provisions of the regulations on “Identification Documents in force” –, tax identification number, actual and elected domicile of the user and, where applicable, of their representative or attorney-in-fact, as well as the tele- phone number and email address for contact.

5.2.1.3. Attach a simple copy or image of the identification document of the filer
and, in the case of legal representatives or attorneys-in-fact, of the instrument that certifies their status as such, the validity of which shall be guaranteed by means of a sworn declaration.

5.2.1.4. Clearly and precisely describe the facts and the complaint made to the entity.

5.2.1.5. Provide together with the filing the identification data of the prior
complaint before the obligated subject (number, date, entity and branch, etc.) and, where applicable, the response of the entity.

5.2.1.6. Attach the documentation that certifies the reported complaint or indicate its
location.”

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“5.2.2. The Central Bank of the Argentine Republic shall use the information received for the purpose of analyzing the practices and conduct of the obligated subjects in relation to the applicable regulations, identifying the universe of affected users and, if non-compliance is detected, exercising its disciplinary powers.

In parallel, the filings received shall be forwarded to the administrative authori- ties with jurisdiction in consumer protection for processing and individual respon- response to the user.

All of the foregoing is without prejudice to the administrative or judicial actions that financial services users may exercise.”

2. Replace the last paragraph of point 2.3.4., the first paragraph of point 2.3.5.1. and the second and third paragraphs of point 3.1.1. of the rules on “Protection of financial services users” with the following:

“Likewise, when the value of the commissions detailed below is modified, the body of the notifications must display a comparative table for those amounts that shall be prepared and duly made available by the Superintendency of Financial and Exchange Entities on the site http://www.bcra.gob.ar/BCRAyVos/Primeras_10_entidades.asp:

• Savings accounts: issuance of additional debit cards; replacement of debit cards due to theft or loss and use of automated teller machines (outside the entity's operating premises, those of another entity and abroad).

• Credit cards: issuance, renewal, administration or account maintenance service; replacement or reprinting of card due to theft or loss and additional cards.

• Specific to the checking account: account maintenance and checkbook.

• Package intended for beneficiaries of social security benefits that include the pension advance service.

• Package maintenance service.”

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“2.3.5.1. Any amount charged in any form to the financial services user for the following concepts:

i) interest rates, commissions and/or charges without compliance with the provisions of points 2.3.2. to 2.3.4.; and/or

ii) charges in excess of the costs of the services that third parties charged to the obligated subjects in relation to services provided to users and/or of the prices that the third-party provider receives from private individuals in general; and/or

iii) commissions in excess of the maximums set by this Institution that are applicable; and/or

iv) in non-compliance with the level of the maximum interest rate applicable to financing linked to credit cards provided for in the rules on “Interest rates in credit operations”; and/or

v) in excess of what was duly agreed between the user and the obligated subject; and/or

vi) others generated improperly by their nature, such as compensatory interest for debit balances generated in deposit accounts other than the bank checking account;

must be refunded to them within:

• the twenty (20) business days following the moment of submission of the complaint before the obligated subject, in accordance with the provisions of point 3.1.4.; or

• the five (5) business days following the moment such circumstance is verified by the obligated subject or by the inspection carried out by the Superintendency of Financial and Exchange Entities.”

…

The supporting documentation for the appointments, together with the personal data of the officials appointed as responsible persons (main and alternate/s), must be held by the obligated subject. In addition, the telephone, fax numbers and postal and email addresses intended for channeling communications related to the user service of financial services must be kept updated and reported through the information regime established for that purpose.

3. Incorporate as points 3.2.3.5., 3.2.3.6. and 3.2.3.7. of the rules on "Protection of users of financial services" the following:

"3.2.3.5. The documentation related to the appointment of those responsible for user service of financial services (main and/or alternate in charge), as indicated in point 3.1.1.

3.2.3.6. The Registry of Amount Refunds (RRI) provided for in point 3.1.X.

3.2.3.7. The Registry of Complaints before Judicial and/or Administrative Consumer Protection Bodies (RDJA) established in point 3.1.Y."

4. Incorporate in Section 3. of the rules on "Protection of users of financial services" the following points:

"3.1.X. Registry of Amount Refunds (RRI).

In this registry, the amounts refunded to users must be recorded, identifying in each case the affected user, the cause giving rise to the event, the products and houses involved.

3.1.Y.Registry of Complaints before Judicial and/or Administrative Consumer Protection Bodies (RDJA).

In this registry, all interventions arising from complaints made before judicial and/or administrative consumer protection bodies shall be recorded, identifying the affected user and specifying the amount involved, the cause giving rise to the event, the products and houses involved."

5. Establish that the adjustments to points 3.1.1.6., 3.1.1.7, 3.1.X., 3.1.Y., 3.2.1., 3.2.3.6., 3.2.3.7. and 4.6. of the Rules on "Protection of Users of Financial Services" provided for in this communication shall enter into force as from 1.11.17, while the remaining ones shall enter into force as from the date of their dissemination."

Subsequently, we will send you the pages that will need to be replaced in the rules on "Protection of Users of Financial Services".

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Agustín Torcassi
General Deputy Manager of Rules
Estela M. del Pino Suárez
General Deputy Manager of Information Regime and Protection of Users of Financial Services