The Law Today

Regulates financial portability

16 Jun 2020

Introduction

On June 9, 2020, Law No. 21.236 (the “Law”) which regulates Financial Portability, was published on the 3rd of June, 2020 in the Official Gazette. Its purpose is to promote financial portability, facilitating people, micro and small businesses to change from one financial service provider to another, or from a current financial product or service to another contracted with the same provider, as they deem appropriate. This law will enter into force 90 days after its publication, that is, from September 8, 2020, applying both to financial products that are in force at the date of publication and to those that are contracted subsequently.

The Law indicates that financial portability applies to those people, natural or legal, who keep one or more financial products or services in force, and who have the status of consumer pursuant to Law No. 19.496 on the protection of consumer rights, or have the quality of micro or small companies according to Law No. 20.416, which sets special rules for smaller companies. In favor of these people, financial portability is established as a right, so any clause contrary to this right will be understood as not written.

In general terms, the portability process may be (i) with subrogation, where a new credit is entered into with a new supplier, to satisfy the obligations of a credit that is maintained with an initial supplier, producing the special subrogation of the credit, and subsisting the guarantees that guarantee this; or (ii) without subrogation, where when contracting new financial products or services with a new supplier, terminating those that the client initially maintained with the initial supplier, and terminating the guarantees that guaranteed such products or services. It is noted that the portability process may take place both between products and services provided by different providers, and between products or services provided by the same provider.

The Law establishes that this will be considered as a norm of protection for the rights of consumers, and Law N ° 19.496 will be applied supplementally. Likewise, for the purposes of the processing of personal data carried out under this law, the provisions of Law No. 19.628, on Protection of Private Life, must be complied with.

Lastly, it should be noted that article 22 of the Law establishes that within 45 days following the date of its publication, that is, no later than July 24, 2020, the Ministries of Finance and Economy, Development and Tourism, must dictate the regulation that regulates all the necessary aspects for its correct application.

Contact

In case you require additional information on this matter, you can contact: Alvaro Caviedes, acaviedes@jdf.cl and / or Christian Schiessler, cschiesslerq@jdf.cl

JDF