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PC 889

Para crear la "Ley para Regular los Negocios de Compraventa de Ingresos Futuros ", a los fines de requerir una licencia para operar a las empresas que se dedican a la compraventa de ingresos futuros y a sus intermediarios; establecer requisitos de divulgación y transparencia para proteger a los consumidores y pequeños y medianos comerciantes; prohibir prácticas abusivas; y asignar la supervisión y reglamentación de esta industria a la Oficina del Comisionado de Instituciones Financieras (OCIF); y para otros fines relacionados.

2025-2028 Session

Puerto Rico bill requires licensing, transparency, and consumer protections for future-income purchasing businesses; grants OCIF regulatory oversight to prevent predatory lending practices.

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Bill Summary · PC 889

Legislative bill overview

Bill PC 889 creates a regulatory framework for companies that buy and sell future income streams (factoring of future earnings). It requires these businesses and their intermediaries to obtain licenses, comply with disclosure and transparency requirements, and prohibits abusive practices. The bill assigns regulatory oversight to Puerto Rico's Financial Institutions Commissioner (OCIF).

Why is this important

Future income purchasing arrangements are often used by small businesses and merchants facing cash flow needs, but lack formal regulation in Puerto Rico. Without oversight, vulnerable borrowers may face predatory terms, hidden fees, and exploitative conditions. This regulation aims to protect small and medium enterprises from unfair practices while allowing the industry to operate under clear rules.

Potential points of contention

  • Industry burden: Licensing requirements and compliance costs may reduce market competition or eliminate smaller players, potentially limiting access to credit for those with few alternatives
  • Scope ambiguity: The definition of "compraventa de ingresos futuros" may be unclear, risking either over-regulation of legitimate lending or under-regulation of problematic practices
  • OCIF capacity: Assigning supervision to an existing agency raises questions about whether OCIF has adequate resources, expertise, and staffing to effectively regulate a new industry sector

Compiled from official sources — confirm details with the bill’s official record.

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