The National Institute for the Promotion of Competition (Procompetencia) has stated that there is an agreement between banks to fix interest rates on credit cards.

The Supreme Court of Justice (CSJ) of Nicaragua annulled the resolutions issued by Procompetencia against the practice, considered by the watchdog as abusive against consumers.

An article in Laprensa.com reviewed the situation where on one side lies the National Institute for the Promotion of Competition (Procompetencia) and on the other the Association of Private Banks (Asobanp), whose president Juan Carlos Arguello denied that there has been an agreement over rates. He explained that behavior responds to the competition between banks, which “is strong.”

Meanwhile Luis Rivas, general manager Banpro also responded by saying “it is completely false that we are in collusion with banks to set interest rates on credit card loans.”

Rivas and Arguello maintain that it would be “extremely difficult” to agree on rates, primarily in consumer loans, including credit cards and cars, as it is the most competitive segment in the market.

Source: Laprensa.com.ni