In April 2025, Honduras enacted major reforms to its Credit Card Law through Decree No. 34-2025. These changes aim to strengthen financial consumer rights and increase transparency in interest calculations and in-person transaction security. In this blog post, we break down the key reforms and their practical implications.
- Fair interest calculation – Article 36
- Financial institutions can no longer charge interest on the full debt amount when partial payments are made.
- Interest will now be calculated only on the unpaid outstanding balance.
- Additionally, payments will be automatically applied to the oldest debts first, helping reduce the accumulation of interest charges.
- Enhanced security for in-person transactions – Article 44
- Merchants must process card payments in the client’s presence and verify their identity during the transaction.
- Notably, this rule does not apply to online purchases or digital payments, ensuring continuity in e-commerce convenience.
- Upcoming regulation by the CNBS
- The National Commission of Banks and Insurance (CNBS) has announced that it will soon issue a complementary regulation to ensure proper implementation of the reforms.
- The regulation will clarify interest calculation procedures and in-person transaction protocols.
These amendments mark a significant step toward a fairer and more transparent credit system. At BLP, we continue to monitor regulatory developments to advise our clients with strategic foresight and legal precision.
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