Esta ley enmienda la "Ley de Pequeños Préstamos Personales" para obligar a las instituciones financieras a reportar mensualmente las tasas de interés (máxima, promedio ponderado y mínima) al Comisionado de Instituciones Financieras y a la Junta Financiera. Además, establece la obligación de publicar semanalmente estas tasas en dos periódicos de circulación general para informar a los consumidores y promover la transparencia en el mercado de pequeños préstamos personales.
(Approved September 12, 2003)
To amend subsection
(b) of Section 10, add a new Section 12
(a) to Act No. 106 of June 28, 1965, as amended, known as "Small Personal Loans Act," in order to establish the obligation of rendering monthly reports on the minimum and maximum interest rate to the Commissioner of Financial Institutions and to the Financial Board, and to establish the obligation of financial institutions of publishing, every Wednesday, the maximum rate, the average weighted rate and the minimum interest rate on the loans granted during the week before its publication.
Since its approval, Act No. 106 of June 28, 1965, as amended, known as "Small Personal Loans Act," has undergone important changes, with the purpose of adapting it to the changes and present needs of the financial world. Through the approval of Act 290 of December 4, 1998, the Act underwent several changes, among which was an amendment to subsection
(b) of Section 10, where the filing of reports was left to the discretion of the Commissioner of Financial Institution. The proposed measure seeks to amend this subsection again to establish the obligation of filing reports on the maximum and minimum interest rate, before the Commissioner of Financial Institutions so that the latter's oversight and control maintains stability in the financial market. On the other hand, Section 12 of Act 106 establishes the tenets of publicity, establishing that no person, whether natural or juridical, may publish information in a deceitful or fraudulent manner the terms and conditions of small loans. We deem that given the
existing competition among financial institutions for leadership in the market, information could exists which may cause confusion among consumers when applying for these loans. The amendment adding a new Section 12
(a) has the purpose to establish the obligation of publishing the maximum and minimum interest rates. Through this, the public shall be better informed about market trends, and thus complies with the public policy established in Section 16 of the Commissioner of Financial Institutions Regulation 5782 providing that no one should take advantage of a person's inexperience or need to impose disproportionate interest rates for each specific case.
The financial market's dynamic imposes upon us the responsibility of monitoring it efficiently for the purpose of protecting its stability and the public interest. It is necessary for consumers to be adequately informed about the trends in the small personal loans market, and in this way, prevent confusion in detriment of the public interest.
Section 1.- Subsection
(b) of Section 10 of Act No. 106 of June 28, 1965, as amended, is hereby amended to read as follows: "(b) Every concessionaire shall submit monthly reports on the maximum rate, average weighted rate and minimum interest rate on loans granted during the thirty (30) days prior to the filing of such reports. Other reports required by the Commissioner shall be submitted on the dates and under the terms provided by the Commissioner."
Section 2.- Section 12(a) is hereby added to Act No. 106 of June 28, 1965 as amended, to read as follows:
"Section 12
(a) "Publication of Interest Rates" Every concessionaire shall publish, every Wednesday, in two newspapers of general circulation, the maximum rate, the average weighted rate and the minimum interest rate of small personal loans granted during the week preceding the publication."
Section 3.- This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 275 (H.B. 2859) of the $6^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to amend subsection
(b) of Section 10, add a new Section 12
(a) to Act No. 106 of June 28, 1965, as amended, known as "Small Personal Loans Act," in order to establish the obligation of rendering monthly reports the minimum and maximum interest rate to the Commissioner of Financial Institutions and to the Financial Board, and to establish the obligation of financial institutions of publishing, every Wednesday, the maximum rate, the average weighted rate and the minimum interest rate on the loans granted during the week before its publication, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $27^{ ext {th }}$ of October of 2004.
Elba Rosa Rodríguez-Fuentes Director