Senate passes a bill on credit card customer liability
Chile
11 enero 2018

After the committee of Economy dispatched the File No. 11.078-03 at the end of last December, the floor of the Senate today voted-unanimously-in favor of this bill. The content of the regulation seeks to improve the typification of the crime of fraud, making the issuers and operators responsible for means of payment for the security of the system. This bill is now moving to Deputies to be analysed and approved.

The long debate this bill held in the Committee had a direct impact on its discussion in the floor, reaching a marked consensus among the different parties participating in the National Congress. This can be seen reflected in the limited number of speakers who participated today in the debate, before quickly closing the vote, and congratulating all of them on the bill’s authors: Eugenio Tuma Zedan (Party for Democracy), Lily Pérez San Martín (Amplitude) ) and Manuel José Ossandón Irarrázabal (National Renewal).

Tuma Zedan requested, as soon as the plenary began, that this file be given priority – because of its importance in protecting consumers from the use of any electronic means of payment. The objective of achieving the most comprehensive possible articles was fulfilled, making it clear that the security of the system should not be a consideration for the payment of special insurance but a requirement to be guaranteed by the participating entities.

In turn, Baldo Prokurica (National Renewal) stressed the need to generate a reform in terms of cybersecurity – taking into account that even the network of the Investigative Police (PDI) could be intervened, despite having the highest standards of protection in the country. Pérez San Martín focused on the return of operations to clients, who place their trust in the institutions and currently depend on having the professional training necessary to channel their claims.

On this last point, she considers that it is the issuers and operators who should be in charge of the task (since they already have a technical team ready to face this type of process) and thus reduce the delays that these procedures represent for the user. Alejandro García Huidobro Sanfuentes (Independent Democratic Union) also accompanied the regulations in his presentation, using in his argument the great increase in the number of cases detected.

Although the official text approved is still not available, it is likely that the Senate authorities will send the file to the Chamber of Deputies only after the Finance Committee has carried out the first analysis of the modernization of the banking legislation bill. (File No. 11.269-05).

Objective of the bill

Transfer the burden of proof to the card issuer in fraudulent transactions, after the user sufferedtheft or loss of his plastic debit, credit and prepaid. In this way, it seeks to protect the rights of the consumer and oblige the issuers to verify that the fraud did not exist to avoid the corresponding refunds.

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