Law on the Promotion and Regulation of Microfinance (consumer protection related)

Nicaragua

(enacted in 2011)

Law on the Promotion and Regulation of Microfinance was passed in June 2011 by the Nicaraguan National Parliament. Title VI of this law is dedicated to advertising, transparency, and consumer protection. Although most of the law applies to all microfinance financial intermediary institutions (IFIMs) and others registered with the newly established National Commission for Microfinance (Conami), the transparency provisions apply only to those IFIMs not otherwise subject to a transparency law. All other institutions will continue to be governed by any existing transparency laws to which they are subject.

Title VI of this law is organized as follows:

Sole Chapter: Miscellaneous Provisions

Article 69. Truth in advertising
Article 70. Obligation of disclosure to clients
Article 71. Contract clauses
Article 72. Determination of interest rates
Article 73. Effective interest rate
Article 74. Justification of commissions and fees
Article 75. Fixed and variable interest rates
Article 76. Rights of the microfinance consumer

The law will enter into force 180 days after its publication in the Official Daily Gazette.

Disclaimer: This summary is based on an unofficial translation from Spanish. The copy of the law available for download is an unofficial version, as the government has yet to publish its official version in the Official Daily Gazette.