Capítulo I. Disposiciones generales

The purpose of this law is to regulate credit card operations, the relationships between the issuer, the affiliate and the cardholder, the protection mechanisms for the credit card financial user, as well as its sanctions regime.

For the purposes of this Law, the following shall mean:

a)Credit card: Magnetic, electronic or any other technology instrument granted by an issuer, which allows the cardholder to use a line of credit as a means of payment for the acquisition of goods, services or for the withdrawal of cash and other authorized services.

b)Primary cardholder: Natural person or legal person who enters into a contract with the issuer, by virtue of which such person is authorized to use a line of credit by means of a credit card, who shall be considered a user of financial services.

c)Additional cardholder: Person authorized by the primary cardholder to share the use of their line of credit, partially or totally, by means of an additional credit card, who shall be considered a user of financial services.

d)Issuer: Legal person that grants lines of credit, which issues and administers credit cards to be used in more than one affiliate, which is considered a provider of financial services.

e)Co-issuer: Legal person which, by virtue of a contract entered into with an issuer, carries out the administration or management of credit card operations, and which may undertake the placement, granting of line of credit, contracting, collection and other operational activities of the credit card as established in the contract. The co-issuer shall have the same obligations as the issuer.

f)Operator: Legal person that provides the services related to the authorization and recording of transactions, administers the authorization and affiliation systems for persons or establishments, as well as other activities related to credit card operations.

g)Affiliate: Natural person or legal person that provides goods, services or cash, accepting the credit card as an instrument of payment.

h)Account statement: It is the document issued by the issuer, in physical or electronic form referring to a determined period, which contains a detail of the amount and the description of the operations in which the credit card has been used, as well as the debits and credits made, in accordance with the contracts entered into.

i)Cut-off date: Deadline established to record in the account statement the accumulation of transactions and their respective values, during a determined period.

j)Payment due date: Maximum date established for the cardholder to make at least the minimum payment referred to the cut-off date.

k)Minimum payment: It is the installment that partially covers the amortization of the principal of the outstanding balance of the line of credit, used according to the financing term, the amount of interest at the agreed rate, commissions and other agreed charges, which the cardholder must pay to the issuer for the use of the line of credit, no later than the payment due date, in order not to incur default.

l)Default interest rate: Annual, monthly interest percentage, or its equivalent, according to the period agreed in the respective contract, which the issuer applies only to the unpaid sum of the principal balance, when on the payment due date the cardholder fails to make the total payment of the credit corresponding to the last cut-off date.

m)Commission: It is the amount that the cardholder must pay for an additional service effectively rendered by the issuer.

n)Cash payment: Amount indicated in the account statement, as of the last cut-off date, which the cardholder must pay, no later than the payment due date, in order not to incur interest charges.

o)Interest rate: Annual, monthly interest percentage, or its equivalent according to the period agreed in the respective contract, which is applied to the financed principal balance, as agreed in the credit card contract, as compensation to the issuer for the use of the principal.

p)Credit limit: Maximum amount of the line of credit that the issuer authorizes to the cardholder, to be used in accordance with the conditions stipulated in the credit card contract.

q)Extra-financing: Additional credit, linked to the credit card, granted to the primary cardholder under conditions and terms that may be different from the line of credit.

r)Brand: It is the exclusive identification of credit cards, with which the issuer or operator, by virtue of a concession or use license contract, issues and operates credit cards.

First- and second-degree savings and credit cooperatives may act as issuers and co-issuers of credit cards.