Mexican Senate passes stricter credit rules

MEXICO CITY - Mexico's Senate has approved stricter consumer credit rules, banning lending practices considered predatory.

The bill bans banks from unilaterally issuing preapproved credit cards and raising credit limits without a client's consent.

The Senate passed the reform Thursday. It now goes to the lower house of Congress.

The Senate said that given the world financial crisis, it is "very important to protect bank clients from predatory practices."

Officials say Mexico's banks are largely unburdened by the risky assets that led to the global financial meltdown.

In October, however, the government offered $3.9 billion in loan guarantees to help Mexican firms refinance commercial debt and avoid a credit crunch.

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