Mexico’s Supreme Court orders banks to reinburse unrecognized charges to account holders

This measure IS EFFECTIVE December 14, 2020 and will be mandatory for all banking institutions IN MEXICO

MEXICO CITY (SCJN) – The Supreme Court of Justice of the Nation determined that banks must return to account holders the money corresponding to unrecognized charges made from debit cards.

This measure, indicated by the Supreme Court, will apply as of December 14 of this year and mandatory for all banking institutions.

Suprema Corte de la Nación (Archive)

“The First Chamber resolved that when the holder of a money deposit account denounces unauthorized withdrawals through the use of a debit card, the banking institution must pay back the amounts withdrawn and, if not, pay ordinary and moratorium interest for the delay incurred at a rate of 6%,” reads the Supreme Court ruling.

The justification given by the Supreme Court of Justice of the Nation for this decision was that banks have an obligation to keep and return the money transferred to them by the account holder. When withdrawals occur that this person is not recognized, the authority said, the banking institution must also respond.

Suprema Corte de la Nación (Archive)

“The obligation to reimburse in the case of unrecognized charges is incurred when the debit cardholder reports the fact to the institution and requests its restitution,” the ruling reads.

The Court’s decision was published in the Federation’s Judicial Weekly, which appears in electronic format.

Source: YT

Mexico Daily Post