TITLE: Chile's Financial Markets Commission Implements First Stage of Credit Card Minimum Payment Regulation
BODY:
On May 29, 2026, Chile's Financial Markets Commission (CMF) announced the entry into force of the first stage of General Norm N°537 (NCG 537), which establishes the minimum payment formula for credit cards. The regulation implements provisions from Law N°21,673 of 2024, enacted to combat consumer over-indebtedness.
The minimum payment is calculated as the sum of 100 percent of the Non-Financeable Amount (MNF)—comprising interest-free instalments, interest, commissions, and other charges—plus 5 percent of the Financeable Amount (MF), which represents the remainder of the billed amount. In the first stage, effective June 4, 2026, interest-free instalments are included entirely in the MF, meaning only 5 percent of their value is included in the minimum payment. Over the following two years, interest-free instalments will gradually transition to the MNF at a rate of 25 percent every six months, reaching 100 percent inclusion by June 4, 2028. The regulation establishes a floor for minimum payments; credit card issuers may require higher payments under their own policies. The CMF will monitor the regulation's effects throughout implementation. During the second half of 2026, the CMF will request granular data from credit card issuers to analyse the norm's impact. The regulation aims to prevent long-term consumer over-indebtedness by establishing clearer minimum payment structures, though the CMF acknowledges that paying only the minimum typically results in higher interest costs and extended debt repayment periods.
Credit card issuers and consumers in Chile are directly affected by this regulation, which represents a significant step in consumer protection and financial stability measures.