Background on the Supreme Court of Justice of the Nation (SCJN)
The Supreme Court of Justice of the Nation (SCJN) is Mexico’s highest court responsible for interpreting the Constitution and ensuring that laws comply with it. Its decisions set legal precedents, influencing the country’s judicial system and impacting various sectors, including banking.
SCJN’s Ruling Against Banks
In a significant decision, the SCJN ruled that financial institutions must prove unrecognized charges on credit and debit cards and accounts. This ruling establishes that banks cannot rely on the legal presumption of “confesión ficta” (fictitious confession) to assume user authorization for disputed transactions simply because the user failed to attend a hearing.
Understanding “Confesión Ficta”
“Confesión ficta” is a legal presumption that certain facts are considered true based on the conduct of a party in a judicial process, such as failing to respond to a lawsuit or missing court hearings without justification.
Implications of the Ruling
According to the SCJN, banks are now obligated to provide clear documentation and reliable procedures to prove that it was indeed the user who authorized and conducted each transaction. This decision strengthens consumer protection, preventing unwarranted charges and ensuring financial institutions act transparently and in accordance with the law.
The SCJN clarified that “confesión ficta” is insufficient, as banks must fully demonstrate the legitimacy of each operation to protect the rights of those who entrust their resources to financial institutions. Only when banks can prove with certified documents that they followed all agreed-upon procedures with the user and their systems functioned correctly can the burden of proof shift to the user to demonstrate they did not authorize the transaction.
Related Legislative Measures
This ruling comes as the Chamber of Deputies approved measures to prevent unsolicited plastic send-outs and ensure their swift cancellation without penalties.
Key Provisions of the Measures
- Financial institutions must allow users to cancel their credit or debit cards in-person, over the phone, or digitally.
- Applications must include a visible and direct button for cancellation, accessible 24/7 through mobile apps, online banking, and official websites.
- The cancellation process must be completed within five business days.
- Emission of credit or debit cards without express user consent is now prohibited, eliminating the need for users to cancel unsolicited cards.
Impact on Consumers and Financial Institutions
This SCJN ruling, combined with the legislative measures, aims to protect consumers from unauthorized charges and ensure financial institutions operate transparently. Users can now more easily cancel unwanted cards, while banks must provide clear evidence of transaction authorization.
Key Questions and Answers
- What is the SCJN ruling about? The SCJN ruled that banks must prove unrecognized charges on credit and debit cards and accounts, as they can no longer rely on “confesión ficta” to assume user authorization.
- What is “confesión ficta”? It’s a legal presumption that certain facts are considered true based on a party’s conduct in a judicial process, such as missing court hearings.
- What do the new legislative measures entail? These measures require financial institutions to allow users to cancel cards easily and prohibit sending unsolicited cards without user consent.
