Chile brings in new SERNAC campaign to benefit consumers

SANTIAGO – “More information, better decisions” was the motto that the Minister of Economy, Pablo Longueira and the SERNAC Director, Juan Antonio Peribonio, used for this campaign. It will inform consumers about the new rights they will have after March 5^th.

During the launch, authorities showed two TV spots which will soon be appearing on TV starting today. In a humorous way, they show a costumer having a lot of problems in understanding the conditions for applying to a loan. This is because; the new law forces companies to give clear, useful and appropriate information to the consumer when applying for a loan.

“With the adoption of this law, Chileans are going to have a lot of benefits in the economic scope, more information and transparency in the contracts they may have to sign for applying to a loan. We want consumers to have the tools and more options to choose, even if they are not experts in financing or economy areas”, the Minister Longueira said.

Minister for Economy, Pablo Longuiera launching a new campaign which will benefit consumers in regards to loans and credit cards. Photo: Ministro de Economía

“This law will help the consumers, since they were the more affected within this market. So far, consumers must be mathematicians or economists to understand what they were paying for, and lawyers for understanding the contracts. That situation did not let them choose. This law will give them back the opportunity for choosing”, the SERNAC Director exclaimed.

Thus, with this law, consumers will have the right that contracts have one page summary about it, which it will be used to compare with other proposals. The consumer will receive a loan quotation in which process and conditions will be valid within 7 days and there will not be barriers for annulling contracts. In addition, consumers will not have to accept other products, such as insurances, when applying for loans.

Last year, SERNAC received 101,067 claims against financial market leading the ranking. 75% of them were because of department stores credit cards and banking consumer credits.

Only during the second 2011 term, there was an increase of 147% of financing claims about the same period in comparison to 2010.

On the other hand, according to a poll conducted by SERNAC, 86% of consumers consider banks and big stores usually do hard-shell, because they require insurances or additional products for a purchase. Consumers qualify with a 3.9 to the information received by these companies for the costs comparison and conditions for loans.

“The President has fulfilled his promise, listening the consumers and solving the real problems. They deserve being the priority. The Financing SERNAC will take care of the people’s wallet, solving a market which was very confused so far”, the SERNAC Director said.

The campaign also includes print advertising. For more information visit: www.sernacfinanciero.cl or calling to 600 594 6000.

This new law is going into effect on March 5th and the regulations about how this norm will be applied are going to be approved later on March.

New rights

The new Financing SERNAC law establishes new rights for consumers and liabilities for companies offering loans.

-          Loan quotations will be valid for a 7 days period.

-          Consumers can annul contracts early (credit cards, bank accounts, etc.)

-          No hard selling

-          Consumer will know loan final prices and purchase easily.

-          Contracts must have one page summary

 Written with translation assitance from José Miguel Galdames Álvarez.