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PC 1038

Para enmendar el inciso (c) del Articulo 14 de la Ley Núm. 106 de 28 junio de 1965, según enmendada, conocida como la “Ley de Préstamos Personales Pequeños” a los fines de flexibilizar los requisitos de activos mínimos que se le requieren a los concesionarios.

2025-2028 Session

Bill relaxes minimum asset requirements for small personal loan lenders in Puerto Rico to increase market entry and credit accessibility.

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Bill Summary · PC 1038

Legislative bill overview

Bill PC 1038 proposes to amend Article 14, subsection (c) of Puerto Rico's Small Personal Loan Law (Law 106 of 1965) to relax the minimum asset requirements currently imposed on loan concessionaires (lenders). The amendment aims to make it easier for lending businesses to operate by reducing their capital or asset thresholds.

Why is this important

Relaxing minimum asset requirements could increase access to small personal loans by lowering barriers to entry for new lenders in Puerto Rico's credit market. However, asset requirements exist as regulatory safeguards to protect consumers from undercapitalized lenders who may lack sufficient reserves to handle defaults or operational challenges, making this change a balance between market access and consumer protection.

Potential points of contention

  • Consumer protection vs. market access: Reduced asset requirements may enable more lending but could expose borrowers to riskier financial institutions with inadequate capital reserves
  • Predatory lending concerns: Weaker capitalization standards could facilitate higher-risk lending practices targeting vulnerable populations seeking quick credit
  • Regulatory enforcement capacity: Lower barriers may increase the number of lenders that regulators must monitor and supervise effectively

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

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