Argentina implements new automatic debt collection system

A new debt collection mechanism known as Cobros por Transferencia (CCT) went into effect on Monday, August 31, in Argentina. Established by the Central Bank of the Argentine Republic (BCRA), the system allows banks, financial institutions, and virtual wallets to automatically debit unpaid loan installments directly from a client's account, even if that account is held at a different entity.

To protect consumers, the regulation requires express prior authorization from the account holder, which can be revoked at any time. The monthly installment amount cannot exceed 30% of the borrower's income and must consist of fixed, equal payments. The system limits collection attempts to a maximum of three: the initial debit followed by two additional attempts at 48-hour and 96-hour intervals.

Lenders are required to notify clients via electronic means on the business day preceding the scheduled debit. While the system aims to improve collection indicators for creditors, local consumer protection agencies, such as the OMIC in Tandil, have issued alerts to ensure users understand that these debits cannot occur without explicit consent.