PRI proposes reform against excessive credit card interest rates in Mexico

Rubén Moreira Valdez, the PRI coordinator in Mexico's Chamber of Deputies, has announced plans to reform the Credit Institutions Law to combat what he calls abusive practices by financial institutions. He warned that some credit cards carry annual interest rates exceeding 100% and Annual Total Costs (CAT) surpassing 200%, potentially causing debts to multiply rapidly and severely impacting family finances.

Moreira criticized clauses that impose fees for not using a card, for making payments at convenience stores, or for minor payment delays. He argued these practices incentivize consumption and penalize those facing economic difficulties. He also called for the National Commission for the Protection and Defense of Financial Users (Condusef) to launch ongoing campaigns to inform the public about the true costs of these credits.

Financial specialist Mario Di Costanzo noted that approximately 46 million credit cards are in circulation in Mexico, with outstanding balances exceeding 64 billion pesos, a growth of over 20%. He explained that many institutions use credit cards to gain market share by offering immediate access but with potentially very high costs for users. Di Costanzo recommended that those already in debt seek restructuring with lower-cost loans and urged Condusef to clearly publish information on the most and least expensive cards and eliminate abusive clauses.

Miguel Ángel Sulub highlighted that individuals with lower incomes and many young people are frequently the ones acquiring these financial products without fully understanding the real impact of interest rates and CAT. He lamented the lack of progress on previous proposals by Deputy Moreira to eliminate various financial service fees.