Businesses engaged in the sale or assignment of loans or other extensions of credit in Mexico, whether through securitization or otherwise, may wish to read a nice article published in the July 31, 2008 issue of Latin American Law & Business Report by my colleagues John E. Rogers and Leonora Olmedo Beltran.

The article discusses the February 2008 amendments to the Law Regulating Credit Information Companies (Ley Para Regular las Sociedades de Informacion Crediticia), which mandate that any financial institution or other lender that sells or assigns to any other person loans or receivables that were previously reported to any Credit Information Comapany (Sociedad de Informacion Crediticia – CIC) inform the CIC thereof within 20 business days after the relevant customer of the financial institution or other lender is required to be so notified under applicable law.  The article suggests that the failure of the seller or assignor and buyer or assignee to contractually agree regarding which party will assume the reporting and other obligations set forth in the amendments could lead to unintended consequences.