Financial Crime World

Puerto Rico Takes Steps to Protect Consumers from Financial Abuses

San Juan, Puerto Rico - The government of Puerto Rico has taken significant steps to safeguard consumers from financial abuses by implementing various measures to regulate debt collection activities and ensure compliance with federal consumer protection laws.

Verifying the Legitimacy of Financial Service Providers

The Authorized Companies Registry, launched by the Office of the Commissioner of Financial Institutions (OCFI), allows consumers to verify the legitimacy of financial service providers before doing business with them. The registry includes information on:

  • Banks
  • Credit unions
  • Insurance companies
  • Money transmitters
  • Mortgage lenders
  • Other financial institutions authorized to operate in Puerto Rico

Regulating Debt Collection Activities

Puerto Rico has implemented a range of laws and regulations to regulate debt collection activities by third-party collectors, including:

  • Consumer Protection Act: Prohibits deceptive, abusive, and unfair practices in debt collection.
  • Fair Debt Collection Practices Act: Regulates the conduct of third-party debt collectors.
  • Regulation 7585: Provides detailed guidelines on how third-party debt collectors should conduct themselves when collecting debts on behalf of others.
  • Puerto Rico Consumer Credit Reporting Agencies Act: Regulates credit reporting agencies.
  • Code of Ethics for Third-Party Collectors: Establishes ethical standards for debt collectors.

These laws aim to protect consumers from unfair and abusive debt collection practices while ensuring that creditors can collect their debts effectively in a lawful manner.

Protecting Military Service Members and Their Families

Puerto Rico has taken steps to protect military service members and their families from predatory lending practices, including:

  • Military Lending Act: Caps interest rates on loans at 36% APR.
  • Servicemembers Civil Relief Act: Provides protection from high-interest rates on pre-service debts and postpones civil court proceedings while service members are deployed.

Overseeing Compliance with Federal Consumer Protection Laws

Puerto Rico’s state government agencies play a crucial role in overseeing compliance with federal consumer protection laws by financial institutions operating within the state. These agencies:

  • Monitor financial institutions to ensure they comply with federal laws.
  • Investigate consumer complaints.
  • Conduct examinations.
  • Collaborate with federal agencies.
  • Educate consumers.
  • Impose penalties on violators.

Conclusion

Puerto Rico’s efforts to protect consumers from financial abuses demonstrate its commitment to maintaining a fair and transparent marketplace for financial products and services. By providing a registry of authorized companies, regulating debt collection activities, and protecting military service members and their families, the government is helping to ensure that consumers are treated fairly and with respect in all financial transactions.