The Clean Slate Law -Law 2157 of 2021- entered in effect on October 29th, 2021. This means that the 12-month transition regime created by the Law ended on October 29th, 2022. The mentioned transition regime allowed to extinguish the negative reports of the data subjects in credit bureaus, once certain special and favorable conditions and terms were met.
Therefore, as of the indicated date, the negative reports will only be eliminated once the maximum term of permanence of the negative data has been completed, which is the double the time of default and maximum 4 years since the obligation was paid or extinguish.
Additionally, it is important to take into account that after October 29th, 2022, the other aspects regulated by the Law will remain in effect, such as the following:
- Negative data will expire 8 years after the obligation becomes in default, after which time it must be eliminated from the database.
- For obligations of less than 15% of the minimum monthly wage in force, 2 prior communications must be made to the data subject, on different days, before making the negative report. 20 calendar days must be between the last communication and the report.
- The maximum term to make a negative report is 18 months after the default.
- The special term to review the documents provided by a data subject claiming to be a victim of impersonation is 10 days.
- Operators, sources and users are obliged to demonstrated accountability in the application of the financial habeas data rules -Law 1266 of 2008 and Law 2157 of 2021-, as well as to implement effective and appropriate measures to apply such rules.
- Penalties for non-compliance in financial habeas data matters were set at a maximum of 2,000 legal monthly minimum wages in force.
Thus, even after the expiration of the special regime that implemented the Clean Slate Law regarding the elimination of negative reports, it will remain in force in all other aspects it regulated, including those aforementioned.
In order to avoid complaints or penalties, it is important that you keep these rules in mind when reporting obligations in default.
In case you have any queries regarding the application of the Law, we will be looking forward to helping you.
Author: Mónica Moreno I [email protected] I Commercial Contracts