Peruvians will once again pay more than 200% interest on loans

Consumer Defense Commission meets in Madre de Dios to approve ‘horse’ rule in favor of banks

The Congressional Consumer Defense Commission seeks to approve tomorrow, Monday, a ruling that would allow banks to increase interest on consumer loans by more than 200% or create new commissions without control, in the midst of an economic recession. The measure will affect more than 32 million Peruvians.

The proposal had already been debated in this commission and an attempt was made to approve it without considering the opinion of consumer defense organizations or banking users. Given the failure of the attempt, it was approved to call a joint session with the Economy Commission to evaluate the proposal.

However, the Economy Commission ignored this decision and approved the proposal immediately, and only the Consumer Defense opinion was missing.

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“Now Consumer Defense is required to approve its opinion in order to take it to the Plenary Session. The Economy Commission approved the opinion along with the one approving the withdrawal of the CTS, as if to cover the issue from the media that were more interested in this issue for obvious reasons.said a legislative source.

The defenders and promoters of the proposal argue, without evidence or support, that the purpose of this rule is to reduce the risks of the so-called ‘drop by drop loans’, but consulted experts point out that there is no support in this regard and the arguments.

REAL OBJECTIVE

The objective of the ruling is to suspend the effects of Law 31143, which protects users from financial usury, and thus return to banks and financial institutions the power to define the interest rates of loans and credits, without the intervention of the Central Reserve Bankwith which they would have no brakes to raise their interests to more than 200%, and to create commissions and penalties that will be charged to banking operations.

“In addition, at this time, those who have an outstanding debt for loans or use of a credit card, as soon as this rule is approved, will suffer an increase in the interest they must pay or will also be imposed charges for commissions that did not exist when requested the credit. “The first affected are the users of the 7 million credit cards that are on the market.”warned José Luna Gálvez, during the debate in the Economy Commission.

IMPACT

The parliamentarian maintained that the ruling seeks to suspend for five years the function of the Central Reserve Bank of setting the maximum interest rates, below which the actors in the financial system can determine their interest rates, based on free competition.

It also seeks to annul the rules that require that the commissions and expenses charged by banks must mean the provision of an additional service to the contracted operations, and that justify the transfer of the service to the client. Therefore, they must submit a report to the SBS that supports said collection.

“They are leaving all banking users exposed to the excesses and ambition of financial and banking entities”Luna Gálvez warned.

FAILURE IN CT

He recalled that the defenders of large banking and financial companies sought to repeal law 31143 in the Constitutional Court (TC), through a lawsuit of unconstitutionality, presented by the Ica Bar Association and the Executive.

However, the entire effort was defeated by the highest interpreter of the Constitution. In the ruling, dated February 20, 2024, the TC considered it essential that, due to the social nature of the economic regime established in the Constitution, state entities cannot remain indifferent to economic activities.

The State, says the TC ruling, has the duty to protect the consumer or user of goods and services.

The TC emphasizes that, in a social market economy, respect for economic freedoms is guaranteed, coupled with the protective role of the State in the face of market distortions; so that economic activity is accompanied by a guaranteeing regulatory framework.

“It is no coincidence that, in Congress, suddenly, this need arises to urgently process and approve the bills that seek to deal a death blow to the law that puts a stop to the excesses and abuses of the banks, days after his attempt to repeal Law 31143 failed”stressed Luna Gálvez.