Manouchehri and Cicardini Revive «No More Charges in UF» Initiative: «It’s Unfair to Charge People in UF While Paying in Pesos»

Original article: Manouchehri y Cicardini reponen proyecto «No más cobros en UF»: “Es injusto que a la gente le cobren en UF pero le paguen en pesos”

«No More Charges in UF»:

The initiative, originally introduced in 2023, will be reinforced with technical enhancements identified throughout its legislative process. The proposal aims to curb the abusive use of the UF in short-term contracts and everyday consumption while establishing greater transparency obligations for families.

Deputy Daniel Manouchehri and Senator Daniella Cicardini, both from the Socialist Party, announced their plans to insist on the «No More Charges in UF» project, originally presented in 2023. They will integrate technical improvements that emerged during legislative discussions, taking into account feedback from specialists.

The proposal will be presented with a more precise focus: limiting the application of the Unidad de Fomento (UF) in short-term contracts and daily use, where this mechanism acts as an automatic adjustment that impacts families’ finances month after month. The regulation will concentrate on contracts where individuals lack real negotiation power, facing continuous increases in essential household expenses, such as rents and school fees, while also mandating greater obligations for information and transparency when the UF is used as an adjustment mechanism.

In parallel, Senator Cicardini reintroduced the initiative in the Senate on June 10 through Bulletin 18340-03, while the 2023 bill awaits a vote in the Chamber of Deputies. Furthermore, Cicardini plans to introduce aspects of this project as amendments during the discussion of the major reform currently underway in the Senate.

«People are charged in UF while being paid in pesos. This is unfair. We presented this project in 2023, and now we will insist on it with technical refinements from its legislative process. The UF might make sense for long-term contracts, but it has become abusive in daily life,» stated Deputy Manouchehri.

Senator Cicardini added, «When the government makes poor decisions that drive inflation, like the gasoline price hike by Minister Quiroz, it’s the people who end up paying the price. The IPC rises, the UF rises, rents go up, and school fees increase. That’s why we want to protect people from automatic adjustments in daily life.»

This initiative is part of a broader agenda aimed at protecting indebted families, pushed by both legislators, alongside projects like «Goodbye Dicom» and «Goodbye Historic,» which establish the right to financial oblivion, already approved by the Chamber of Deputies and currently in progress in the Senate. Additionally, Manouchehri and Cicardini announced plans to seek cross-party support to advance the discussion of the project in both chambers.