The head of the Ministry of Justice and Human Rights, Aníbal Torres, criticized the president of the board of the Central Reserve Bank, Julio Velarde, who had previously shown his position against the law to limit interest and avoid bank usury. The minister stated that “If this man does not like what I am saying, he also has the doors open to leave”.
“[En aquella vez] the same chairman of the board came out [del BCR] to criticize the law that established that limitation [de intereses], saying that this undermines free competition. And that is another absolute ignorance, ”Torres added in an interview with Radio Exitosa.
In this note we will tell you all the details about the law that caused the controversy between the minister and the representative of the monetary authority.
What is the law of bank usury or interest cap law?
The regulation approved at the insistence of the Congress of the Republic grants powers to the Central Reserve Bank (BCR) to set maximum interest rates every six months, exclusively for consumer loans equal to or less than 2UIT (8,800 soles) and for loans to mypes.
Active interest rates charged above the limit will be considered usury and classified as a crime. Thus, it establishes that the crime of usury typified in article 214 of the Penal Code is applicable to financial activity and intermediation.
The SBS will be in charge of supervising compliance, proceeding to denounce and sanction those who are in breach.
When was Law 31143 on interest caps approved?
Law n ° 31143 that protects consumers of financial services from usury was approved at the insistence of the March 11, 2021, with 85 votes in favor, eight against and 12 abstentions in the plenary session of the Congress. The autograph was published on March 18th in the Official Gazette El Peruano.
What modifications does the credit card interest cap law include?
The credit card interest cap law approved in the first quarter of this year modifies the Articles 6 and 11 of Law no. 28587, Complementary Law to the Consumer Protection Law on Financial Services. In addition, reform to the Law no. 26702, General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance in the articles 9, 221, 349 and 358. In this way, it stipulates that the default and compensatory interest rates charged by financial entities must be within the limits set by the BCRP.
What complementary provisions does the bank usury law propose that places limits on interest rates for financial services?
Law no. 28587 specifies the following complementary provisions:
Contract modifications and payment rescheduling due to temporary difficulties due to the pandemic
Companies can carry out contractual modifications of credits and rescheduling within the framework of a declaration of a state of emergency.
In addition, it indicates that the SBS will establish the procedures for the treatment of the referred clients and will determine the alternatives according to their financial situation and payment capacity. This does not imply the additional charge of interest, commissions, penalties, administrative expenses or others.
Credit life insurance refund
In all credit operations in which credit life insurance is available, it is the responsibility of the financial institution to present the user with at least one credit life insurance alternative with redemption or refund, which will be freely chosen by the client.
Additionally, the client may freely choose to contract credit life insurance through the financial entity or with the insurance company of their choice. If the client chooses to contract credit life insurance with an insurance company independent from the financial institution, this will not generate additional commission or expense.
Certificates of no debt and mortgage lifting
Once the credit is canceled, the financial system company will automatically deliver the certificates of non-debt, vehicle pledge release and mortgage guarantee, as the case may be, under functional responsibility within a period of no more than seven business days.
Elimination of the interplaza commission
In debit card contracts, it is not appropriate to collect the inter-seat commission for cash withdrawals through an ATM of the bank itself or at service windows in a town other than the city where the user opened the bank account.
Failure to comply with this provision gives rise to the imposition of the respective sanction in accordance with the provisions of the corresponding regulations of the SBS.
Elimination of the membership commission charge
In the credit card contract, the membership commission is not charged, unless the parties agree to it, without prejudice to the benefits, rights and obligations of the credit line granted by the financial system company.
.
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
