The Superintendency of Industry and Commerce in Colombia has issued External Circular No. 002 of 2023 with a clear objective to curb the difficulties faced by consumers while acquiring credit through electronic routes. This policy update has been mainly brought about in reaction to a multitude of complaints by consumers. Holland & Knight LLP sheds light on this development.
This latest regulation places responsibility on both natural and legal entities that offer credits via digital channels, clearly defining that they have a set of obligations to fulfil. Even though the specifics of the regulations have not been thoroughly defined, the emphasis of the released circular is unequivocally towards better protection of consumers in the digital credit marketplace.
While the challenges of electronic credit have been a worldwide concern for regulatory bodies, this move by the Colombian supervisory body is a decisive and proactive step. Future progress related to the adaptation and enforcement of these regulations will be keenly observed by international legal and financial observers.
The newly issued circular and the reactions it generates could potentially set a precedent for similar actions by supervisory bodies in other jurisdictions. This further emphasizes the importance of this development for not only Colombian legal framework but also global credit market regulation.