UNDERSTAND FINANCIAL CONSUMER LAW AND HABEAS DATA LAW

PRESENTED BY:

EDGARDO MARCELO VILLANUEVA SOGAMOSO

NATIONAL LEARNING SERVICE - SENA

REGIONAL CAPITAL DISTRICT

FINANCIAL SERVICES CENTER

MICROFINANCIAL SERVICES AND OPERATIONS

FILE – 2282622

MOSQUERA –
CUNDINAMARCA
2021
UNDERSTAND FINANCIAL CONSUMER LAW AND HABEAS DATA LAW

PRESENTED TO:

ALBA LUCERO BELTRAN SARMIENTO

SENA INSTRUCTOR

NATIONAL LEARNING SERVICE - SENA

REGIONAL CAPITAL DISTRICT

FINANCIAL SERVICES CENTER

MICROFINANCIAL SERVICES AND OPERATIONS

FILE – 2282622

MOSQUERA –
CUNDINAMARCA
2021
 ❖ ENSUREMENT EXERCISE

Dear apprentice, at this first moment I invited you to actively participate in this proposed activity,

which has been proposed with the purpose of helping the generation and construction of new

knowledge. To do this, click on the video link: “Law 1328 of 2009

https://www.youtube.com/watch?v=MAaz819B8tQ&t=3s . Once finished, answer the following

interesting questions that emerge from the video:

A.) What does Law 1328 of 2009 on Financial Consumer Rights dictate and establish?

RTA: The purpose of this regime is to establish the principles and rules that govern the

protection of financial consumers in the relationships between them and the entities supervised by

the Financial Superintendence of Colombia, without prejudice to other provisions that

contemplate special protection measures and instruments. .

For the purposes of this Title, the concept of financial consumer includes any person who is a

consumer in the financial, insurance and securities market systems.

B.) What definitions are established in Law 1328 of 2009?

RTA: For the purposes of this regime, the following definitions are established:

V Client: It is the natural or legal person with whom the monitored entities establish

relationships of legal or contractual origin, for the supply of products or services, in

development of their corporate purpose.

V User: It is the natural or legal person who, without being a client, uses the services of a
supervised entity.

V Potential Client: It is the natural or legal person who is in the preliminary phase of

preliminary negotiations with the monitored entity, regarding the products or services

offered by it.

V Financial consumer: Any client, user or potential client of the supervised entities.

V Products and services: Products are understood to be legally authorized operations that
are implemented in a contract entered into with the client or that have their origin in the

law. Services are understood to be those activities related to the development of the

corresponding operations and that are supplied to financial consumers.

V Adhesion contracts: These are contracts drawn up unilaterally by the supervised entity
and whose clauses and/or conditions cannot be discussed freely and in advance by the

clients, limiting themselves to expressing their acceptance or rejecting them in their

entirety.

V Complaint or claim: It is the manifestation of dissatisfaction expressed by a financial

consumer regarding a product or service acquired, offered or provided by an entity

monitored and made aware of it, the financial consumer ombudsman, the Financial

Superintendency of Colombia or of the other competent institutions, as appropriate.

V Supervised entities: These are the entities subject to inspection and surveillance by the
Financial Superintendence of Colombia.
 C.) What is the difference between client and user?

RTA: The difference between a client and a user is that the client is that natural or legal person

who establishes a relationship of legal or contractual origin, for the supply of products or services

in development of its corporate purpose.

The user is that natural or legal person who, without being a client, uses the services of a

monitored entity.

D.) Mention the guiding principles that govern the relationships between financial

consumers and the supervised entities.

RTA: The following are established as guiding principles that govern the relationships between

financial consumers and supervised entities:

V Due Diligence. The entities supervised by the Financial Superintendence of Colombia

must use due diligence in the offering of their products or in the provision of their

services to consumers, so that they receive the information and/or due and respectful

attention in the development of the relationships they establish with them, and in general,

in the normal development of their operations. In this sense, the relationships between the

supervised entities and financial consumers must be developed in a way that seeks to

satisfy the needs of the financial consumer, in accordance with the offer, commitment and

agreed obligations. The supervised entities must observe the instructions issued by the

Financial Superintendence of Colombia regarding security and quality in the different

distribution channels of financial services.

V Freedom of choice. Without prejudice to the special provisions that impose the duty to
supply a certain financial product or service, the supervised entities and financial

consumers may freely choose their respective counterparties in the execution of contracts

through which the supply of products or provision is implemented. of services that the

former offer. The refusal to provide services or offer products must be based on objective

causes and no unjustified different treatment may be established for financial consumers.

V Transparency and true, sufficient and timely information. The supervised entities

must provide financial consumers with certain, sufficient, clear and timely information,

which especially allows financial consumers to adequately know their rights, obligations

and the costs in the relationships they establish with the supervised entities.

V Responsibility of the monitored entities in the processing of complaints. The

supervised entities must efficiently and duly address complaints or claims filed by

financial consumers within the deadlines and conditions provided for in current

regulations and, after identifying the causes that generated them, design and implement

the necessary timely improvement actions and you continue.

V Adequate management of conflicts of interest. The supervised entities must manage

conflicts that arise in the development of their activity between their own interests and

those of financial consumers, as well as conflicts that arise between the interests of two or

more financial consumers, in a transparent and impartial manner, ensuring that The

interest of financial consumers always prevails, without prejudice to other provisions

applicable in this regard.

 V Education for the financial consumer. The supervised entities, trade associations,

consumer associations, public institutions that carry out intervention and supervision in

the financial sector, as well as self-regulatory organizations, will ensure adequate

education of financial consumers regarding the financial products and services that they

offer. offered by the supervised entities, the nature of the markets in which they operate,

the institutions authorized to provide them, as well as the different mechanisms

established for the defense of their rights.

E.) What are financial consumers entitled to, as long as they maintain a relationship

with the financial institution?

RTA: Without prejudice to the rights enshrined in other current legal provisions, financial

consumers will have, during all moments of their relationship with the supervised entity, the

following rights:

V In development of the principle of due diligence, financial consumers have the right to
receive from the supervised entities products and services with safety and quality

standards, in accordance with the conditions offered and the obligations assumed by the

supervised entities.

V Have at your disposal, in the terms established in this law and in the other special

provisions, advertising and transparent, clear, truthful, timely and verifiable information,

on the characteristics of the products or services offered and/or supplied. . In particular,

the information provided by the respective entity must be such that it allows and

facilitates its comparison and understanding against the different products and services

offered in the market.

 V Require due diligence in the provision of the service by the supervised entities.

V Receive adequate education regarding the different ways of implementing the products
and services offered, their rights and obligations, as well as the costs generated by them,

the markets and type of activity carried out by the supervised entities, as well as the

various protection mechanisms established to defend their rights.

V Respectfully present queries, requests, requests, complaints or claims to the supervised

entity, the Financial Consumer Ombudsman, the Financial Superintendency of Colombia

and the self-regulatory organizations.

V The other rights established in this law or in other provisions, and those contemplated in
the instructions issued by the Financial Superintendence of Colombia.

{ Added by art. 1, Law 1555 of 2012

F.) What are the duties of financial consumers?

RTA: The duties of financial consumers are as follows:

• Make sure if the entity with which you wish to contract or use the products or services is
authorized and supervised by the Financial Superintendence of Colombia.

• Find out about the products or services you plan to acquire or use, inquiring about the
general conditions of the operation.
 • Observe the instructions and recommendations given by the supervised entity regarding
the management of financial products or services.

• Review the terms and conditions of the respective contract and its annexes, as well as
keep the copies provided of said documents.

• Find out about the bodies and means available to the entity to present requests, requests,
complaints or claims.

• provide true, sufficient and timely information to the supervised entities and the
competent authorities in the events in which they request it for the due fulfillment of their
duties and to update the data that so require.

• They will inform the Financial Superintendence of Colombia and the other competent
authorities about entities that provide financial products or services without being legally
authorized to do so.

G.) Mention the protection practices by financial consumers.

RTA: These are the financial consumer protection practices.

V Make sure that the entity with which you wish to contract or use the products or services
is authorized and supervised by the Financial Superintendence of Colombia.

V Find out about the products or services you plan to acquire or use, inquiring about the
general conditions of the operation; that is, the rights, obligations, costs, exclusions and

restrictions applicable to the product or service, requiring the necessary, precise and

sufficient verbal and written explanations to enable you to make informed decisions.

V Observe the instructions and recommendations given by the supervised entity regarding
 the management of financial products or services.

V Review the terms and conditions of the respective contract and its annexes, as well as
keep the copies provided of said documents.

V Find out about the bodies and means available to the entity to present petitions, requests,
complaints or claims.

• Obtain a timely response to each product or service request.

Paragraph 1 °. The failure to exercise self-protection practices by financial consumers does not

imply the loss or ignorance of their rights before the supervised entities and the competent

authorities. Likewise, it does not exempt the supervised entities from the special obligations

enshrined in this law with respect to financial consumers.

Paragraph 2 °. Financial consumers will have the duty to provide true, sufficient and timely

information to the supervised entities and the competent authorities in the events in which they

request it for the due fulfillment of their duties and to update the data as required. Likewise, they

will inform the Financial Superintendence of Colombia and the other competent authorities about

entities that provide financial products or services without being legally authorized to do so.

H.) List some special obligations of the supervised entities.

RTA: Special obligations of supervised financial entities.

V Provide information to the public regarding Financial Consumer Ombudsmen.
V Deliver the product or provide the service properly, that is, under the conditions informed,
offered or agreed upon with the financial consumer, and employ adequate safety and

quality standards in their supply.

V Provide understandable information and transparent, clear, truthful, and timely advertising
about its products and services offered in the market.
• Have a Financial Consumer Service System (SAC).

V Refrain from engaging in conduct that entails contractual abuse or from agreeing on

clauses that may affect the balance of the contract or give rise to an abuse of contractual

dominant position.

V Prepare contracts and annexes that regulate relationships with clients, clearly, in characters
legible to the naked eye, and make them available to them for their acceptance.

V Copy of the documents that support the contractual relationship must be available to the
respective client, and will contain the terms and conditions of the product or service, the

rights and obligations, and the interest rates, prices or rates and the way to determine

them.

V Refrain from making charges not agreed upon or not previously informed to the financial
consumer, in accordance with the terms established in the regulations on the matter, and

have at their disposal the receipts or supports of the payments, transactions or operations

carried out through any channel offered. by the monitored entity.

V Refrain from making any collection for prejudicial collection expenses without having
carried out a real activity effectively aimed at said management, and without having

previously informed the financial consumer of their value. Collection efforts must be

carried out respectfully and at appropriate times.

V Keep the confidentiality of the information provided by the financial consumer and that is
 classified in the terms established in the corresponding regulations, without prejudice to

its provision to the competent authorities.

V Provide evidence of the status and/or specific conditions of the products on a specific date,
when the financial consumer requests it, in accordance with the procedure established for
this purpose, except in those cases in which the supervised entity is obliged to do so
without prior application required.

❖ Now we are going to know the Risk Centers; To do so, I invite you individually to carry

out an exploration on “what are the risk centers in Colombia?” And what are the

differences between CIFIN and Data Crédito, which were published on the Rankia blog

page Mejores Créditos y Loans Colombia and through the link:

https://www.rankia.co/blog/mejorescreditos-y-prestamos-colombia /4117375- qué-son-

centrales-riesgo-colombia and https://www.rankia.co/blog/mejores-creditos-y-prestamos-

colombia/4273636-diferences-cifindatacredito .

Additionally, refer to the consultation booklet Volume 2 of Colombiaaprende.edu.co, page 28

“credit histories and risk centers.”

Next, answer the following questions:

A.) Describe what a credit history is and why it is important for financial institutions to

keep it?

RTA: Credit history is your financial profile; allows you to identify how you have managed your

financial commitments in the past with financial entities and commercial establishments. In other
words, it is a record of the behavior of the financial commitments that are made throughout life.

These are both debts contracted with financial institutions and with commercial establishments

(cell phone accounts, television, chain stores).

B.) What are risk centers?

RTA: They are private entities that provide an information service that allows knowing the

commercial and financial behavior of the people reported to them (positively or negatively) by

private or public entities, financial entities or the real sector.

C.) What are the risk centers in Colombia and specify what service each one provides.

RTA: In our country there are 3 risk centers that store and manage our credit histories:

TRANSUNION (CIFIN), DATACRÉDITO and PROCRÉDITO.

Each of these entities receives information from banking, telecommunications, commercial and

service sector entities. There they record your payment behavior, both positive and negative.

As long as you have financial obligations you will appear on their list with a history, this is not a

bad thing. Simply realize that you exist in the commercial and financial world.

It is a mistake to believe that you must leave these Centrals. What you should try is to improve

your credit score with good practices.

None of these centers has the capacity to define who is and is not granted credit.

Let's learn more about these plants:

Who reports to them?

• TRANSUNION AND DATACREDITO are reported by Banks, Services and

Telecommunications Sectors, Businesses and Fintechs

• Merchants report to Procrédito (stores that grant credit, for example)

Who watches them?

• TRANSUNION AND DATACREDITO are monitored by the Superintendence of

Industry and Commerce (SIC)

• FENALCO monitors Procrédito

 D.) What differences exist between CIFIN and Data Crédito?

RTA: the functions of both credit bureaus are very similar , however, there are some differences

between them. Let's see it below:

• First of all, CIFIN is an entity originated and directed by the Association of Banking and

Financial Entities of Colombia, while Datacrédito is a totally private initiative and acts as
a subsidiary of the company Computer SA

• Both entities receive information from banks, companies and commercial establishments

regulated by the Financial Superintendence; However, CIFIN has a more dynamic flow of

information with the banks and entities of the Colombian Banking Association. For its

part, Datacrédito is also in contact with these banks, but also has broader information

networks in other economic sectors other than banking.

• An important difference between CIFIN and Datacrédito is the way in which they present

the information. While Datacrédito reports the clients' qualifications monthly and their

debt status quarterly, in accordance with the parameters issued by the Financial

Superintendency of Colombia. For its part, CIFIN issues all its reports quarterly,

including qualification reports. This has meant that Datacrédito tends to be more used

than CIFIN.

• Another difference is that in Datacrédito a person who has entered the list will always be

on it, even when they have no pending payment obligations. But in CIFIN, the history
 will only be taken into account as long as the client maintains an active payment

obligation.

• Regarding negative data, when in CIFIN a delay is less than one year and said status has

been finalized with a voluntary payment, the client's negative record will remain twice as

long as the delay; and when the debt is greater than one year, and the voluntary payment

has been terminated, the negative history will remain for two years. However, if the

payment is made after an executive process, the person will maintain the negative rating

for 5 years.

• For its part, when the client's history is negative at Datacrédito, the client will remain

double the time corresponding to the default after the debt has been paid. If the default is

equal to or greater than two years, then you will remain in negative status for four years

after paying.

E.) What is required to carry out the consultations?

RTA: What is required to generate credit data queries, the only thing we need is the personal data

of the people to consult their financial history as well as some security questions requested by the

system.

F.) What type of reports are made, and check the qualifications.

RTA: they are reported by Banks, the services and telecommunications sector, Shops and
Fintechs. Merchants (stores that grant credit) report to Procrédito.

The ratings managed by the risk centers are:

Category A.

Credit with NORMAL credit risk. Credits rated in this category reflect appropriate structuring

and attention. The financial statements of the debtors or the project's cash flows, as well as other

credit information, indicate an adequate payment capacity, in terms of the amount and origin of

the income that the debtors have to meet the required payments.

Category B.

Credit with ACCEPTABLE risk. The credits classified in this category are acceptably serviced

and protected, but there are weaknesses that could potentially affect, temporarily or permanently,

the debtor's payment capacity or the project's cash flows, in such a way that, if not corrected in a

timely manner, they would reach affect the normal collection of the credit or contract.
Category C.

Poor credit, with APPRECIABLE risk. Credits or contracts that present insufficiencies in the

debtor's payment capacity or in the project's cash flows, which compromise the normal collection

of the obligation in the agreed terms, are classified in this category.

G). What is Procredit?

RTA: Registers clients and/or people who have not fulfilled their credit responsibilities with

businesses or merchants. It is monitored by FENALCO.

 ❖ CONCEPT MAP CONSUMER PROTECTION LAW
Emml
In developing the principle of transparency of true, sufficient and timely information, supervised
entities must train financial consumers, at a minimum. the characteristics of the products or
services, the rights and obligations, the rates or prices and ■■ PRINCIPLES the way to determine
them, the measures for the management of the products or services, the consequences derived
from non-compliance with the contract.

Abusive exonerating clauses attenuate or limit the

responsibility of the monitored entities or that imply the resignation or I DISADVANTAGES
limitation of the exercise of your rights as a financial consumer
m
Í A regime for the protection of financial consumers is established, which
establishes the principles and rules that must govern the relationships
between them and the entities supervised by the banking supervisor.
Provide information to the public regarding financial consumer
advocates

( Deliver the product or provide the service properly )—

Provide understandable information and transparent advertising. clear , In Colombia, by virtue of the issuance of Law 1328 of 2009, it was made
emphasis on financial consumer information,
truthful, timely about its products and services offered in the
market. (IMPORTANCE)------------ Additionally, it is intended that the financial consumer knows their
rights, duties, obligations and costs of the service so that you can
make a better choice.
(Have a financial consumer information system

Avoid engaging in conduct that leads to contractual abuse or

agreeing to clauses that may affect the balance of the contract □ give
rise to an abuse of dominant contractual provision.

Prepare contracts and annexes that regulate relationships with clients,

clearly, in characters readable to the naked eye, and make them
available
disposition of these for acceptance
/ It is the natural or legal person with whom the monitored entities
(Refrain from making unannounced or uninformed charges . (Custom •establish a relationship of legal or contractual origin, for the supply of
previously to the financial consumer er) products or services, in development of its corporate purpose.

Save the reserve of information provided by the consumer

It is the natural or legal person who, without being a client, uses the
financial and that has the character of a reserve in the established terms User
services
by the corresponding regulations
of a monitored entity

(Attend and respond in a timely manner to requests, complaints or It is the natural or legal person who is in the previous phase of
Potential client preliminary negotiations with the supervised entity, regarding the products
claims. formulated by financial consumers
or services offered by it.

Provide human, physical, and technological resources so that in the

branches and agencies provide efficient and timely attention to the -( Financial consumer ) -( It is any client, user or potential client of financial entities j
financial consumers.

(allow clients free consultations at least once a month per

the channels that the entity indicates.
Protection Law (These are the entities subject to inspection and surveillance
of the
. Financial Superintendence of Colombia

Report to the financial superintendence of Colombia that in a manner that

consumer
this name, the price of all products and services that are
offer massively

(find out about the bodies and means available to the entity to
l present requests, requests, complaints or claims.

(Get a timely response to each request for products or services

| In development of the principle of due diligence. the consumers

financial institutions have the right to receive from the supervised
entities
products and services with safety and quality standards

Have at your disposal in the terms established in this law and

in the other provisions of a special nature, advertising and
transparent, clear, truthful, timely and verifiable information on the
characteristics of the products or services offered and/or
supplied.

Receive adequate education regarding the different forms of

implement the products and services offered, their rights and
obligations, as well as the costs that arise from them, the markets —(Rights of financial consumers
and type of activities carried out by the supervised entities as well as the
various protection mechanisms established for the defense of
Your rights

Present queries, requests, complaints or claims in a respectful manner.

before the supervised entity, the financial consumer ombudsman, the
financial superintendency of Colombia and the
self-regulation.

Í The other rights established in the law or in other provisions, and

those contained in the instructions issued by the financial
superintendence of Colombia
> Client Case No. 1
cartoon
 > CASE Client N°2 .

A client of a financial institution signs authorization to consult information; He needs to check his

credit balance, but he doesn't come in person, but instead asks his mother for a favor. At the

financial institution she is assisted by the employee in charge, who refuses to provide the required

information.

V What is your position regarding this situation? Explain whether you acted well or

were negligent. R/TA: Faced with the situation raised, I would personally agree with how the

financial advisor acted since, since the data is so sensitive, it cannot be provided to just anyone

since the crime can be passed through family members to obtain information from the clients and

This would represent a risk for the entity and its users, and this could help with fraud within the

entity, so it would have been the client's mother but the woman, as they present the case, did not

have any signed authorization from the son.

 > CASE Client N°3 .

A client wants to process a loan and the person in charge at the financial institution, to speed up

the process, did not have the information query signed at the risk center.

V What do you think of the consultation process carried out by the employee of the

financial institution? R/TA: the person in charge acted incorrectly as each person's personal

data is sensitive information and data protection refers to the practices, safeguards and

fundamental principles put in place to protect your personal information and ensure that you

remain in control of it. For this reason, any query made about information must have a document

where the client authorizes the procedure.