Law to combat abuses in the financial system will go to the Official Registry

With 123 affirmative votes, the plenary session of the National Assembly ratified 20 articles of the draft “Organic Law to defend the rights of clients of the national financial system and avoid improper charges and unsolicited services.” In addition, with 134 votes, twelve suggestions raised in the Executive’s partial objection were accepted.

“The Ecuadorian people finally have a law that defends us from abusive collections and bad practices that have been taking place in the financial system,” said the president of the Legislative, Guadalupe Llori.

A few days ago, President Guillermo Lasso partially vetoed the project. He made 32 observations, of which the Economic Regime Commission recommended to the plenary legislature, through a non-binding report, to acquiesce in 12. And this same commission suggested ratifying the texts of 20 provisions that were objected to.

Now the law will go to the Official Registry. This regulation establishes, among other aspects, that financial institutions inform their users and/or clients of the security measures that they will apply in relation to the use of codes and passwords.

Questions and answers on the bill to combat abuses in the financial system partially vetoed by the Executive

Likewise, they must submit to the Assembly an accountability report during the first quarter of each year, with respect to the previous fiscal year, which will include a description of the general state of the national financial system, as well as the results of the control and of the defense of the rights of users and/or clients.

The speaker, Pabel Muñoz, indicated that the bill expands the rights of banking customers and prevents the financial system from committing abuses or charging for unsolicited services.

On the other hand, the regulations require financial institutions to carry out strict controls on the services they provide through electronic banking and other electronic channels and to implement adequate and sufficient safeguards to safeguard user resources.

This text includes two chapters: in the first, reforms are made to the Monetary and Financial Code and in the second, changes are incorporated into the Consumer Defense Law and modifications to the Telecommunications Law.

Regarding the Monetary and Financial Code, the temporality of the right of return was once again established in the event of a claim, which was not included in the president’s objection.

This is article 158.1, which reads as follows: “In cases of claims in which there is no prior authorization from the client or user for charges or collections, as well as in cases that have not been answered within the terms established for this purpose, the financial institution must return, without further ado, the entire disputed amount, plus interest calculated from the date on which the charges and collections object of the claim occurred until the date of return, at the rate of legal interest published by the Central Bank of Ecuador and in force on the effective date of payment. These returns must be made within a maximum term of three (3) days.

Article 60 on the purpose of the Superintendence of Banks passed, but with certain modifications. The Executive had considered that the proposed text was redundant with the functions and proposed to delete it.

So, it was this way: “The Superintendence of Banks will carry out the surveillance, audit, intervention, control and supervision of the financial activities carried out by public and private entities of the national financial system, with the purpose that these activities serve the general interest. , are subject to the legal system, and to avoid, prevent and discourage fraudulent and prohibited practices in order to protect the rights of users and/or clients of the national financial system”. (I)