News

/ Ministry of Economy publishes Regulation on Economic Solvency Analysis and Information to Consumers

9 February, 2022

María Ignacia Ormeño Sarralde
Associate Attorney
Alessandri Abogados

 

From February 2 to 18, 2022, the Ministry of Economy will publish for public consultation the Regulation on economic solvency analysis and information to consumers, which aims to establish the form and conditions of the obligation of financial providers to analyze the economic solvency of the debtor before contracting a credit product. Such analysis will be based on sufficient information, obtained through official means intended for such purpose, and the consumer must be informed of the result of such analysis.

This regulation will comply with the provisions of Law No. 21,398 (Pro-Consumer Law), which amends Law No. 19,496 on the consumer rights protection (Consumer Law). Specifically in its article 17 paragraph n) which establishes that a regulation must determine the form and conditions to be observed to comply with the obligation stated therein. This is why it will be the National Consumer Service (Sernac) which will be responsible for ensuring compliance with the provisions of the Regulation.

Scope of Application:

  1. Providers of money lending contracts, including both those that are supervised by the Financial Market Commission (CMF) and those that are not.
  2. Consumers in their capacity as final recipients of advertising, offers, promotions, quotations or offers of money lending contracts.

Official means of information:

  1. List of debtors delivered by the CMF.
  2. Commercial bulletin.
  3. Information provided directly by the consumer or his/her agent.
  4. Information obtained directly by the supplier, with prior authorization of the consumer.

Principles to be complied with: no arbitrary discrimination and purpose of personal data.

The personal data collected in the process of economic solvency analysis must comply with the provisions of Law No. 19,628 and No. 20,575. These data must also be accurate, updated and truthfully respond to the actual situation of the consumer subject to evaluation.

Main obligation:

  1. To perform the economic solvency analysis, taking into consideration the following background information:
    • Current and expected income during the term of the money lending contract. Except in those operations whose amount does not exceed 10 Unidades de Fomento.
    • Employment situation.
    • Fixed expenses.
    • Level of indebtedness.
    • Existence and quality of guarantees.
    • Among other objective conditions previously and publicly established by the provider.
  2. Report its result, duly explaining the analysis performed; and
  3. Adopt policies in its internal procedure to monitor compliance with this standard, this in line with what would be a compliance program.

Special rules:

  1. Spouse or civil partner: the provider may only request their information when:
    • Has access to the use of the contract or is contractually liable.
    • The consumer bases his or her ability to pay for the contract on his or her income.
    • The consumer’s ability to pay depends on alimony, child support or similar, with respect to his spouse or civil partner or third party.
  2. Higher education: prohibition to offer to these institutions money lending contracts that are not directly related to the financing of the provision of educational services.

 

Join the public consultation process here.

If you require assistance for participation, please send an email to alessandri@alessandri.cl

Next circular in consultation: Interpretative Circular on abusive clauses.