Argentina Central Bank implements new loan debit system

The Central Bank of the Argentine Republic (BCRA) is implementing a new system called ‘Cobro con Transferencia’ (CCT), effective August 31. This mechanism allows banks and fintech companies to debit loan installments directly from a client's linked bank account or digital wallet.

To protect consumers, the regulation mandates several safeguards. Users must provide explicit, one-time authorization before any debits occur, and they retain the right to revoke this consent at any time. The system is designed for loans with fixed, equal installments, and the monthly payment cannot exceed 30% of the borrower's income. Additionally, creditors must provide a mandatory electronic notification one business day before attempting a debit. The system limits collection attempts to one initial try and a maximum of two reattempts at 48 and 96-hour intervals.

Debits are restricted to the specific account where the loan funds were originally deposited. Consequently, the system cannot access funds held in investment accounts, dollar-based MEP investments, or cryptocurrency wallets. While the BCRA aims to curb rising delinquency rates, some financial institutions have expressed concerns regarding the practical design and effectiveness of the tool.