Mexico Bans Unsolicited Credit Cards

Mexico City — The Mexican Chamber of Deputies has unanimously approved, with 467 votes, a reform that prohibits the charging of fees and commissions for credit or debit cards not solicited by users.

The modifications, proposed by the Morena party coordinator, Ricardo Monreal, reform various articles of the Law for Transparency and Regulation of Financial Services. The changes establish that financial entities may not charge commissions for the provision of financial services, insurance, memberships, or additional benefits not previously authorized in an adhesion contract or without the user’s express consent.

The reform also stipulates the obligation for bank card issuers to guarantee that all information regarding costs, charges, and commissions associated with the product is clear, truthful, and sufficient. It further prohibits any offer, promotion, or message that, directly or indirectly, leads the user to believe that the means of access to funds are without cost when they are not.

Additionally, issuing entities must guarantee users the right to cancel bank cards in person, by phone, or digitally. The cancellation must be carried out within a maximum period of five business days and at no cost. In the event that charges have been applied, they must be reimbursed within a maximum of five business days.

“The issuance of a means of access consisting of credit or debit cards without the express and verifiable consent of the user shall be null and void by operation of law, as established in Article 18 Bis of this Law,” states the reform. “Consequently, no obligation shall be generated for the user, nor shall its cancellation be necessary.”

While presenting his proposal, Ricardo Monreal, who is also the president of the Political Coordination Board, stated that many financial institutions send cards to people’s homes without having been requested. After a year, they charge annual fees and even late payment interest for not paying that fee, and ultimately, users end up in the Credit Bureau, unable to acquire credit or achieve financial inclusion.

The legislator asserted that the modifications are progressive and indispensable for protecting users.

“I want to tell the legislators that this legislation is applied in many parts of the world. In the United States, a phone call is enough for a credit card to be considered canceled. In Mexico’s case, you first have to do it in person in most cases, and they apply deliberate delays so that you get tired and no longer insist on the cancellation,” he explained.

“That’s what this is about, so that, through digital means, using the internet, you can notify the branch that sent it or the institution that sent the card to say ‘I did not request it,’ ‘I do not accept it,’ and therefore, they cannot apply annual fees, penalties, or commissions that the user pays improperly, and even less so place you in the Credit Bureau.”