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Reforms to the Law on the Protection of the Rights of Consumers and Users in Nicaragua

On February 03 of this year, the National Assembly of Nicaragua approved the reform proposal to Law 842, Law on the Protection of the Rights of Consumers and Users, which to date has not yet been published in La Gaceta, Official Journal, which is why it has not entered into force.

The reform includes, among others:

  • The extension of the quality of Consumer Person or User is now also contemplated as such to the State and its Institutions. With this, the State will be held as a Judge and party, without it actually being able to find itself helpless in relations with products or services suppliers.
  • In addition, basic services have been expanded, which now includes cell phone, internet and subscription television; as a result of its massive consumption, without any sector discrimination.
  • The expansion of financial services, i.e. deposits, credits, credit and debit cards, transfers, family remittances, purchase and sale of currencies, insurance, stock exchange operations, general deposit warehouse operations, payment systems, financial payment services technology and any other services provided by financial institutions; further delimiting that the Central Bank of Nicaragua will address any claims arising from these services.
  • The extension of suppliers’ obligations may not deny without justified legal cause the attention of applications or cancel contracts or transactions legitimately managed by public, private or mixed natural or legal persons, that is, when they comply with all the requirements laid down in the relevant legal order.
  • It has been expressly defined, within the rights of users of financial services, that they must be notified by the financial institution, verifiably, of the negative decision regarding the contracting of products or services, or of the cancellation or suspension of contracts for goods or services, decisions which must be legally justified.

So, mainly, we find that:

1. The State will no longer only ensure that the rights of consumers and users are respected but may also enforce their rights as a consumer when they have been violated.

2. The State opens the door for financial institutions, if or if, to provide services to all those who require it, even in the case of natural or legal persons, leaving aside the autonomy of the Financial Institution.

Lía Incer Flores
Senior Associate
García & Bodán