Financial Crime World

Puerto Rico’s Authorized Companies Registry: A Vital Tool for Consumer Protection

In an effort to safeguard consumers against fraudulent activities, the Puerto Rico Office of the Commissioner of Financial Institutions (OCFI) has established an Authorized Companies Registry. This registry enables consumers to verify the legitimacy of financial service providers before doing business with them.

Regulating Debt Collection Activities

Puerto Rico has a robust framework for regulating debt collection activities by third-party collectors working on behalf of financial companies. The laws and regulations in place aim to protect consumers from unfair and abusive debt collection practices while ensuring creditors can collect debts effectively.

Here are some key regulations:

  • The Consumer Protection Act (Act No. 5 of 1973): prohibits deceptive, abusive, and unfair practices in debt collection.
  • The Fair Debt Collection Practices Act (Act No. 93 of 1978): regulates third-party debt collectors’ actions when collecting debts on behalf of others.
  • Regulation 7585: provides detailed guidelines for debt collectors to follow.

Special Protections for Military Service Members and Their Families

Puerto Rico has implemented various protections for military service members and their families under state law. These include:

  • The Military Lending Act (MLA): protects service members and their dependents from high-interest loans.
  • The Servicemembers Civil Relief Act (SCRA): provides protection from certain legal actions, such as eviction or foreclosure, while they are on active duty.
  • The Military Spouse Residency Relief Act: allows military spouses to maintain their residence in one state for tax purposes.

State Government Agencies’ Role in Overseeing Compliance with Federal Consumer Protection Laws

Puerto Rico’s state government agencies play a vital role in ensuring that financial institutions operating within the state comply with federal consumer protection laws. These agencies:

  • Monitor compliance
  • Investigate complaints
  • Conduct examinations
  • Collaborate with federal agencies
  • Educate consumers
  • Impose penalties for violations

Recent Action Taken by Puerto Rico’s Authorities

In recent years, Puerto Rico’s authorities have taken various steps to strengthen consumer protection measures, including implementing new regulations and increasing enforcement actions against financial institutions that violate consumer protection laws.

Consumers can access the Authorized Companies Registry online or visit OCFI offices to verify the legitimacy of financial service providers. By doing so, they can ensure a safer and more transparent marketplace for financial products and services in Puerto Rico.