Reformed Law Regulating Information Services On Credit History People.

Original Language Title: REFÓRMASE LA LEY DE REGULACIÓN DE LOS SERVICIOS DE INFORMACIÓN SOBRE EL HISTORIAL DE CRÉDITO DE LAS PERSONAS.

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

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DECREE N ° 196

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-Article 2, second paragraph of the Constitution states that "The right to honor, personal and family intimacy and to the image itself is guaranteed" by

what is necessary to protect the right of the citizens, with respect to the information of their credit, so that their credit information is correct and truthful.

II.-That by Legislative Decree No. 695 dated April 29, 2011, published in Official Journal No. 141, Volume N ° 392 of July 27 of the same year, is

issued the Law of Regulation of Information Services on The History of Credit for People.

III.-That in our country companies operate that, through the automated processing of data, make an exclusive reference to the credit behavior of the people; however, the issuance of the rules mentioned above, such companies may cause injury to persons, by

failures to query, use, share, and market information; because of the above, it becomes necessary to better regulate data reporting agencies and economic agents.

IV. The Constitutional Chamber in Judgment 142-2012 dated October 20, 2014; among other aspects, establishes the right to self-determination

information, which implies different faculties that are recognized to the individual to control the use of the personal information which concerns him, both in his collection and in the treatment, conservation and transmission of your own

data.

V.-That in spite of advances in the protection of personal data, it is

necessary to reform the Law of Regulation of the Information Services on the History of Credit of Persons, in order to avoid abuses and excesses in the manipulation, storage and marketing of the credit information of

people.

BY TANTO,

in use of its Constitutional powers and at the initiative of the Deputy Francisco José Zablah Safie; and the Deputy of the Legislature 2012-2015 Douglas Leonardo Mejia Avilés; and with the support of the and the

Deputies: Santiago Flores Alfaro, Reynaldo Antonio Lopez Cardoza, Jackeline Noemi Rivera Avalos, Jose Francisco Merino Lopez, Gustavo Danilo Acosta Martinez, Ana Marina Alvarenga Barahona, Ana Lucia Baires de Martinez, Luis Alberto Batres Garay, Roger Alberto Blandino Nerio, Yohalmo Edmundo Cabrera Chacón, José Vidal Carrillo Delgado, Crissia Suhan Chavez Garcia, Norma Cristina Cornejo Amaya, Alma Cruz, Raul

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Omar Cuellar, Santos Margarito Escobar Castellón, Carlos Alberto Garcia, Maria Elizabeth Gomez Perla, Ir is Marisol Guerra Henriquez, Estela Yanet Hernandez Rodriguez, Audelia Guadalupe Lopez, Cristina

Esmeralda Lopez, Samuel de Jesus Lopez Hernandez, Hortensia Margarita Lopez Quintana, Martyr Arnoldo Marin Villanueva, Rolando Mata Fuentes, Maria Otilia Matamoros de Hernandez, Jose Santos Melara Yanes, Jose Alfredo Miron Ruiz, Carlos Alberto Palma Zaldana, Mario Antonio Ponce Lopez, Zoila Beatriz Quijada

Solis, Nelson de Jesus Quintanilla Gomez, Margarita Rodriguez Siguenza, Jaime Orlando Sandoval, Karina Ivette Sosa, Jaime Gilberto Valdez Hernandez and Carlos Mario Zambrano Campos.

DECRETA the following:

REFORMS TO THE LAW ON THE REGULATION OF THE INFORMATION SERVICES ON THE HISTORY

OF PEOPLE ' S CREDIT

Article 1.-Substitute, in Article 3, the data definition as follows:

" Dato: Credit History Information of consumers or customers, which is the property of consumers or customers and consists of a database. "

Article 2.-Reform the third indent and add a fourth indent to Article 5, as follows:

" The Central Reserve Bank shall lay down the technical standards for the organization, operation, control and other aspects. related to data reporting agencies on credit history; as well as to determine the concrete length of time data on history data

of credit in the databases of those reporting agencies; and set out clearly and in detail what personal data should be provided by consumers to the economic agents, which must be related to the information needed for the

credit history development. "

" In order to perform an appropriate regulatory, policy monitoring and evaluation function

of the Financial System; and to have fundamental information to assess impacts of the provisions contemplated in the issuance or reforms of technical standards associated with this Law, the Superintendence of the Financial System, at the request of the Central Reserve Bank of El Salvador,

will be obliged to send the information requested to it in due time for this. "

Article 3.-Reform the third paragraph of Article 6, as follows:

" The Consumer Ombudsman shall have the power to request the necessary information and carry out verifications, in order to carry out the investigations. related administrative matters, and in each

case, with the complaint or complaint filed. Where there are collective or diffuse interests, the Consumer Ombudsman shall, in the exercise of its powers, have the powers to verify and investigate, on its own initiative, the practices of economic operators and data-reporting agencies, compliance

to the duties set forth in the Consumer Protection Act. Also, where the above interests exist, it will have the power to request reports and investigate the practices of the economic agents not supervised by the Superintendence of the Financial System. "

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Article 4.-Add three points, between first and last, to Article 8 of the following way:

" The information service on the credit history of individuals may be provided by legal, public or private persons, who will be known as data reporting agencies.

Private data information agencies shall be constituted, having as their purpose main, the collection of data information about people's credit history.

However, it is expressly prohibited, to these data reporting agencies, to use the information collected from the credit history of customers or consumers for other purposes other than those set out in this Law. These must have a minimum social capital of one hundred and fifty

thousand dollars from the United States of America, fully subscribed and paid in cash. The capital of these agencies will be adjusted by the Superintendence, every two years, taking into consideration the variation of the Consumer Price index, after the Central Reserve Bank's opinion; in addition, they will contribute

to the financing of the Budget of the Superintendence and Appeals Committee, up to a zero point seventy-five percent of its annual income.

Data agencies must have a professional body of management, trained personnel, equipment and technology platform for managing information, control systems administrative, security applications, manuals, procedures, policies, internal controls and business continuity plans that ensure the proper functioning of the regulated services

in this Law, all conformity with the legal order in force and the technical standards which the Central Reserve Bank will provide for this purpose. "

Article 5.-Reform literals (a), (c) and (d); and add the literals (h) and (i) of Article 14, as follows:

" a) Access to information: Consumers or customers have the right to know all information that they provide they maintain or manage economic agents and data reporting agencies. To do this, data reporting agencies will have to have at least one center

customer support in each region, so that interested people can consult their information.

The consultation of this information will not cause cost to consumers or customers.

The corresponding data reporting agency must provide in written form, in the

at which time it is requested, the information to the consumer or customer, upon request made in a verbal or written form, verifying the identity of the consumer or customer; know which creditor entities had access to their credit history, and use for

the one that was required.

In any case, the data reporting agency will provide the consumer or customer with, prior to

request, and verified the right of your application, the information related to the credit history; for which, you must have among others, technological means that facilitate your access.

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Data reporting agencies will issue certified copies of credit history They are requested to do so. Such a query should not generate any payment, up to a maximum of

a query every four months. It will be subject to payment of a fee by exceeding the extended certifications, which will be fixed by the data information agencies, with the authorization of the Superintendence of the Financial System. Such certification must be delivered within a period

not greater than three working days; "

" c) Good information management: Personal and credit data, treatment object,

may not be used for purposes different for those that were collected.

In no case, the information contained in the credit reports may be used by

natural or legal persons, as criteria for hiring, selection or causal personal, except by a judicial or legal order which so warrants or by the exceptions laid down in the Law; neither economic agents nor data reporting agencies may

deliver credit history information for the purposes described above; "

" d) Consense the collection and transmission of the information: The data on credit history,

provided by consumers or customers to economic agents, may only be collected or transmitted to data reporting agencies and supplied by them to economic agents, with the authorization in writing and express by consumers or customers, in accordance with the provisions of the Article 18 of the Consumer Protection Act. Such authorization

must be contained in a document or other individual means that permits the Laws, which is special to the effect.

The cases that consist of checks that protect, for lack of funds or for having been rotated, shall be excepted against closed current account, or in order to suspend payments; "

" h) Identification of the quality of the guarantor or co-debtor in solidarity: Every consumer or customer has the right to be specified in his credit history, when any data negative of the same is associated or derived only from his/her status as a guarantor or co-debtor in solidarity; ' e,

" (i) Negative data inclusion requirements: Only negative data shall be included, when the prior existence of a certain, partial or fully expired debt, payable, is present,

that has been paid out.

In addition, for the case of the guarantor and co-debtor in solidarity, the requirement

must be made prior to payment to the principal debtor.

The economic agent or whoever acts on his or her own account or interest shall be obliged to keep, to

provision of the data reporting agency, of the Superintendence of the Financial System and of the Consumer advocacy, sufficient documentation to demonstrate compliance with data inclusion requirements. "

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Article 6. -Add a third indent to Article 15, as follows:

" When the consumer or customer does not authorize the use or consultation of the information by third parties, it will not be causal for the economic agent to deny him or her service or sell the product in question. "

Article 7.-Reform literals (a) and (h); and add the literals (j), (k), (l), (m) and (n) of Article 17, as follows:

" a) Inform or supply the credit history to the consumer or customer who requests it, in the terms set forth in this Act; "

" h) Contar at least one customer service center in each region of the country, in which consultations and representations related to consumer credit history can be made or

clients, which will be effectively served in a time no longer than three business days.

In addition, they must have at least one call center at national level and at

extended schedules for the aforementioned purposes; they must publish every six months and when any changes are made, to the knowledge of the consumers or customers, through two national circulation newspapers and permanently on their electronic pages, the addresses and telephone numbers of each of the customer service centers; "

" j) Remove and disable permanent way the negative data of the consumer or customer credit history, after a period not greater than three years, starting with

incorporation of that data into the base.

However, in case the consumer or customer completely cancels his or her credit, no

may remain the information that affects negatively their credit history for more than one year, and in cases where the cancelled debt does not exceed half of a minimum wage in the trade and services sector, it will not be able to remain for more than six months.

Data reporting agencies they will report monthly to the Superintendence and to the economic agents, a report on the information people who have

permanently removed data that negatively affects their credit history according to the previous paragraph; "

" k) Specify in the credit history, when a negative data from the is associated or derived solely from the condition of a guarantor or co-debtor in solidarity; "

" l) Provide the consumer or client, in writing or through any other means of technological innovation, with the information at the time when requests, upon request made in a verbal or written form, or by another technological means, that the Effect the agencies of

data information. Such information shall include the name of the creditor entities that have access to their credit history in the last three years, and the use for which it was required; '

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" m) Deliver to the Superintendence of the Financial System, at its request, in the period set in this Act, and under any circumstances involving the suspension or cancellation

of its operations, the database containing the credit history of the persons; "and,

" n) Maintaining the database on the country and allow access to the System Superintendence

Financial. "

Article 8.-Add a literal g), and incorporate a final paragraph in article 18, of the following

form:

" g) Provide the respective data information agencies, relevant certifications

they have the authorisations issued individually and expressly by the consumer or customer, both for the consultation and for the transmission of data, together with the monthly submission of the updated information referred to in (a) of the Article 18 of this Law. "

" Economic agents may contract the credit risk profile classification and rating service of a person, consumer or customer, as long as it is ensured that the said

service does not infringe the rights of the persons. '

Article 9.-Add a literal h) to Article 19 as follows:

" h) Use, transfer, share, and market to any title and destination the information of the persons on the database, without the the express consent of their holders to carry out such activities. '

Article 10.-Reform Article 20, as follows:

" Article 20.-The rights of access, rectification, modification and cancellation of the data stored to provide the data information services on history credit, may be exercised by the consumer or client to the economic agent, data agency, the

Superintendence of the Financial System or the Consumer Defensory, being able to the consumer or client, to make claim to rectify their data by the means set out in this Law, including technological means, by adding the evidence in this respect. "

Article 11.-Reform the first and the literal (e) of Article 21, as follows:

" Article 21.-The filing of a complaint or complaint with the economic agent, the data information agency, the Superintendence The Financial System or the Consumer Ombudsman shall be effected by means of a printed request, by e-mail or other technological means. That

document, to be serviced, must contain the following: "

" e) The general information provider identification and data, if the client is

known to them. "

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Article 12.-Reform Article 22, as follows:

" Article 22.-In If the consumer or customer decides to act in front of the economic operator or the data reporting agency, such an application shall be submitted to the economic operator or the data-reporting agency, who shall receive it, expressing the day and time at

The economic agent or the data information agency must to respond to the request addressed to him by the person concerned within a period of no more than five working days. '

Article 13.-Add a literal g) to Article 29 as follows:

" g) Use, transfer, share, and market, in terms other than those set forth in this Act, the information of consumers or customers, Less than in each individual case, the express consent of the latter to carry out such activities is provided. "

Article 14.-Reform Article 32, as follows:

" In the event of a recurrence in the suspension of operations, or not to be remedied by the data reporting agency, the reasons for which it was suspended within the period established in the previous article, the cancellation of the ability to operate as an agency of data information shall be carried out. "

Article 15.-Addition, between article 32 and article 33, an article 32-A as follows:

" Safeguard and confiscation of database

Article 32-A.-In cases of suspension or cancellation of operations, related to the

authorization to function as data information agency on the credit history of the persons, the agency to which the operations are suspended or cancelled, must, at the request of the Superintendence, deliver to this your database for your reservation, within three days

working, counted from the notification of suspension or cancellation of operations. This procedure will be done in order to protect the information that is owned by customers or consumers.

If the data reporting agencies do not meet the deadline set in the previous paragraph, the Superintendence, with the aid of the public force, will proceed, without further processing, within the deadline

maximum of twenty-four hours, to the seizure of the referred databases. The data information agency will not be able to stay with any backup, physical or virtual, from the database.

In the case of suspension of operations, if the data reporting agency exceeds the causals that caused the suspension, the Superintendence of the Financial System will proceed to the return of the database within a period not greater than five working days, counted from the date that they have been

exceeded the causal of suspension.

The Superintendence will have to ensure the protection, custody and adequate storage of databases, in a place and form according to its internal information security measures.

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Superintendence may not, under any circumstances, access, use or reproduce the information contained in the databases that you resent or custodian. The Central Reserve Bank must establish,

by technical standard, the procedure to be followed for such purposes.

In the event of definitive cancellation, the safeguarding and custody of the databases by the

Superintendence, it will be for a period of up to twelve months; once this deadline is over, it will have to proceed to the permanent elimination of the information contained in the databases. "

Article 16.-The Central Reserve Bank, from the entry into force of this Decree, will have a period of ninety days for the issuance of the corresponding Technical Standards. Also, economic agents and data reporting agencies will need to take the necessary steps

to adapt to these reforms; to do this, they will have an additional ninety days from the issuance of these Rules.

Article 17.-This Decree shall enter into force eight days after its publication in the Official Journal.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twenty-six days of the month of November of year two Fifteen.

LORENA GUADALUPE PEÑA MENDOZA,

PRESIDENT.

GUILLERMO ANTONIO GALLEGOS NAVARRETE, ANA VILMA ALMASEZ DE ESCOBAR,

FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.

JOSÉ SERAFIN ORANTES RODRÍGUEZ, NORMAN NOEL QUIJANO GONZÁLEZ,

THIRD VICE-PRESIDENT. FOURTH VICE-PRESIDENT.

SANTIAGO FLORES ALFARO,

FIFTH VICE PRESIDENT.

GUILLERMO FRANCISCO MATA BENNETT, DAVID ERNESTO REYES MOLINA,

FIRST SECRETARY. SECOND SECRETARY.

MARIO ALBERTO TENORIO GUERRERO, REYNALDO ANTONIO LÓPEZ CARDOZA,

THIRD SECRETARY. FOURTH SECRETARY.

JACKELINE NOEMI RIVERA AVALOS, JORGE ALBERTO ESCOBAR BERNAL,

FIFTH SECRETARY. SIXTH SECRETARY.

ABILIO ORESTES RODRÍGUEZ MENJÍVAR, JOSÉ FRANCISCO MERINO LÓPEZ,

SEVENTH SECRETARY. EIGHTH SECRETARY.

PRESIDENTIAL HOUSE: San Salvador, at the sixteen days of December of the year two thousand fifteen.

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PUBESQUIESE,

Salvador Sánchez Cerén, President of the Republic.

Tharsis Salomon López Guzmán, Minister of Economy.

D. O. N ° 233 Tomo N ° 409

Date: December 17, 2015

SP/geg 21-01-2016

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