Reform To The Credit Card Law (Decree 34-2025)

Sandra Izaguirre, Associate in Arias Honduras, expert in Banking and Financial Law shares the following article on the most recent reform the Credit Card Law and how it changes how interest is calculated on credit cards in Honduras. Interest applies only to unpaid balance. The National Banking and Insurance Commission gains broader oversight powers. 

The National Congress of Honduras recently approved Decree 34-2025, which introduces key amendments to the country's Credit Card Law. This reform, in effect since June 5, 2025, aims to correct one of the most criticized practices by users: charging interest on the total balance, even when the customer made partial payments. Under the new rules, interest may now only be calculated on the remaining balance after each payment. 

The reform has significant implications for companies that manage corporate credit cards or whose operations include financial services, accounting, or portfolio management. The new structure enables better cash flow planning and avoids hidden costs. Businesses that issue or administer credit cards will need to review their contracts, billing systems, and internal procedures. Sectors such as retail, banking, fintech, and call centers must also update their protocols and train customer service staff to comply with these new requirements. 

Among the most relevant provisions of the Decree is that interest must now be calculated only on the outstanding balance after each payment - not on the total statement amount. The law also mandates greater transparency in credit card statements, particularly in how charges and interest are presented. Additionally, the powers of the National Banking and Insurance Commission (CNBS) have been expanded to oversee and sanction practices deemed abusive by issuers. 

The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client rel