Panama Law 80: An Overview
This article provides a comprehensive overview of Panama’s legal framework regarding credit cards.
Ley 80 de 2009 – Ley de Tarjetas de Crédito y otras Tarjetas de Financiamiento
Source: https://vlex.com.pa/vid/ley-81-2009-ley-1049123674
| Concepto | Definición |
|---|---|
| Afiliado | Establishment business, financial, industrial or service included in the business universe where cardholder and additional person can use credit card or credit/finance card issued by issuer to purchase money, rent, acquire goods or services from affiliated merchants. |
| Cargos | Sum of charges inherent to credit and financing activity that must be paid by the cardholder to the issuer or operator for using credit card and its use in commerce. |
| Contrato de tarjeta de crédito | Agreement between a financial institution and another person, granting the latter the right to use one or more credit cards or credit/finance cards to facilitate acquiring goods, money, or services from affiliated merchants. This contract can also be called credit card usable opening. |
| Contrato mercantil | Agreement between the cardholder and a affiliated merchant, by which they acquire money, rent or acquire goods or services from the latter. |
| Emisor u operador | Entity that contracts with the customer in the Republic of Panama to deliver one or more credit cards/finance cards for use in national or international commerce according to the terms and conditions stipulated. |
| Estado de cuenta | Document prepared by the issuer containing a description of different operations used during which credit card and other finance cards have been used, which will be communicated to the cardholder in the agreed manner and must comply with the requirements outlined in this Law and other applicable regulations. |
| Fecha de corte o cierre | Deadline for closing the relationship of consumos and payments made by the cardholder within a given period. |
| Fecha límite de pago | Deadline set by which the cardholder must pay the full amount, partial amount or the minimum payment indicated by the credit card issuer to avoid defaulting on payment. |
Pros and Cons
- **Pros:**
- Offers a flexible credit option for individuals.
- Convenient for online payments and purchases.
- Access to credit lines for emergencies or large purchases.
- **Cons:**
- Potential for high interest rates if not managed effectively.
- Risk of accumulating debt if spending habits are not controlled.
- Possible impact on credit score due to late payments or defaults.
Frequently Asked Questions
What is the legal framework for credit cards in Panama?
Panama’s legal framework for credit cards is based on Law 80 of 2009, which regulates the business of credit and finance cards. This law aims to protect consumers’ rights and ensure fair practices.
Who can apply for a credit card in Panama?
Anyone who meets the requirements set by the bank or financial institution can apply for a credit card in Panama. Factors considered include income, employment history, and creditworthiness.
How much does a credit card cost in Panama?
The costs associated with credit cards vary from one institution to another. Banks usually charge an annual fee, a monthly maintenance fee, interest rates on outstanding balances, and charges for services such as cash advances or foreign transactions.