The Board of the Chile Financial Market Commission (CMF) imposed a UF 400 fine on Scotiabank Chile for breaching Article 16 of Law No. 18,010 after it charged interest in arrears due to operational defects. Under Article 16, debtors in money credit operations who fall into arrears owe current interest from the date of delay at the rates in effect during the period of delay, unless otherwise stipulated or a higher rate was legally agreed. A second clause added in April 2021 sets limits on late-payment interest, including that interest in arrears cannot be applied jointly or additionally on the same amount with any other interest, can only be charged on the portion of principal effectively overdue, and cannot be capitalised to calculate interest of any kind.
Chile Financial Market Commission 2025-02-19
Chile Financial Market Commission fines Scotiabank Chile UF 400 for breaching late payment interest rules
The Chile Financial Market Commission fined Scotiabank Chile UF 400 for violating Article 16 of Law No. 18,010 by charging interest in arrears due to operational defects. Article 16 stipulates that interest in arrears cannot be applied jointly with other interest, must only be charged on overdue principal, and cannot be capitalised.