2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 39 - Small Personal Loans (§§ 941 — 959) › § 954 - Charges

(a) Maximum charge. — The Financial Board shall be empowered to fix, regulate, increase, reduce or open to free trade through regulations and for the time needed, the rates of interest and maximum charges allowed by law. Furthermore, the Financial Board may determine the methods for computing the rate of interest.
(b) Charges for deferral of installments. — The grantee may grant deferral of installments subject to the terms and conditions established thereto by the Commissioner through regulations.
(c) Insurance charges. — At the option of the borrower, a charge will be collected for the cost of consumer credit insurance pursuant to the provisions of Chapter 18 of Title 26.
Provided, That:
(1) Said insurance may be obtained by the borrower or by the grantor of the loan, with the consent of the borrower.
(2) In the case of consumer credit insurance, the amount established in Articles 18.050 and 18.60 of the Insurance Code of Puerto Rico shall not be exceeded.
(3) No loan concessionaire shall require as a condition to grant a loan that:
(A) The borrower shall obtain consumer credit insurance,
(B) and if said insurance is obtained it be provided through a certain person, agent, broker or solicitor or some specific insurer.
(4) If the loan contract is to include an item for insurance, it shall contain a notice clearly written in bold lettering and double the size of the other letters to the effect that the consumer credit insurance is offered on a voluntary basis and the borrower is not bound in any way to accept it.
(5) Credit insurance is offered to the consumer only after having advised the client that his/her personal loan was approved by the concessionaire.
(d) Payment in advance. — A borrower may pay in advance the total amount of a loan or one or more installments thereof. If he pays the loan in full, in cash or by granting a new loan or refinancing the original loan, the grantor shall not collect the portion corresponding to installments not due. If the borrower makes partial payments in advance, he shall receive a credit or reimbursement for the portion of the charges corresponding to the installments so paid in advance. The credits or reimbursements shall be computed using the method more beneficial for the consumer, pursuant to the regulations issued by the Commissioner.
(e) Other charges. — No grantor shall advise, require or allow any person, his/her spouse, or both jointly, to become indebted under more than one loan contract at the same time, or to break down or divide any loan or loans for the purpose or with the result of obtaining higher charges. No additional sum or charge shall be charged, contracted for received from the borrower, whether directly or indirectly, if not authorized by the Board through regulations.
History —June 28, 1965, No. 106, p. 278, § 14; July 26, 1979, No. 5, p. 937, §§ 1, 2; May 28, 1982, No. 21, p. 43, § 4; July 22, 1988, No. 132, p. 543, § 13; Aug. 9, 1995, No. 117, § 5; Dec. 4, 1998, No. 290, § 7; Jan. 9, 1999, No. 15, § 1, eff. 90 days after Jan. 9, 1999.