Debt Collection Agency Argentina
Amicable Debt Collections Argentina
1. General information
We provide debt collection services with extensive local expertise in order to meet clients’ needs. We contact debtors verbally and in writing with a proactive and objective approach, aiming to maintain the relationships between our clients and their debtors at all times.
1.2. Local agents
We work with a range of selected partners to supplement our local knowledge and expertise. They complement our global presence and help us meet our clients’ needs wherever they are located in the world. Our local partners are based in Buenos Aires city. If necessary, we can visit debtors at their own local addresses; however, the travel costs must be covered by the client.
1.3. Interest
Usually during the amicable phase, debtors are charged with a rate not exceeding 1% per month. Meanwhile, in order to have the interest paid, the client is obliged to provide an official document such as a debit note.
1.4. Debt collection costs
During the amicable phase, this is a matter of negotiation. However, the collection costs cannot be added to a case unless a signed contractual agreement exists between the debtor and the client. From a cultural point of view, Argentinian debtors are not used to paying debt collection costs.
2. Legal collections
2.1. General information
We take legal action when every approach has been exhausted during the amicable phase. The debtor is considered in default through a registered letter, which, although is mandatory to proceed to the legal route, is a formal notice recognised by the law as evidence.
2.2. Required documents
The documents required to proceed with legal proceedings are:
- A notarised power of attorney with an apostille
-Original invoices or promissory notes
-Bills of lading
-Other original documentation, like the contract between the client and the debtor.
-The power of attorney, which represents the client, must be written or translated by a public translator to the local language (Spanish), granted before a notary and legalised by an apostille.
2.3. Legal dunning procedure
Regarding the commercial law in Argentina, a shorter process than an ordinary lawsuit can be initiated only when there is an executive title – a title or negotiable instrument that implies its execution. These are promissory notes, checks and agreements, in which the debtor recognises their debt before a notary, or judicial warrants that order the debtor to pay the debt.
2.4. Lawsuit
Argentina follow a Civil Law System, which is divided into: Federal Courts, which are organised by the federal government Provincial Courts, which are organised by each province Courts of the City of Buenos Aires, which although being called ‘national courts’, have jurisdiction only in the city. Prior to this instance, the law requires a compulsory mediation. If the mediation is not successful, the trial begins and legal fees are to be paid in advance. Typically, the trial goes through a long evidentiary stage.
2.5. Debt collection costs
Initially, the costs of the formal presentation of a judicial action, whether executive or ordinary, range from 3% to 5% of the total amount to be claimed. If this action must be initiated in a jurisdiction other than Buenos Aires, the initial costs may reach up to 5%.
2.6. Expected time frame
In the event that it is feasible to initiate an executive action, the process may run until its completion during a period no longer than three years. When it is necessary to appeal to an ordinary trial, with a long evidentiary phase, it usually takes more than three years.
2.7. Interest and costs in the legal phase
Interest and extrajudicial costs may be charged as part of the legal claim. Extrajudicial costs must be clearly established. Although the interest rates agreed by the parties are usually accepted, the judges have the power to modify them if there is evidence of disproportion or unjustified enrichment.
3. Insolvency proceedings
3.1 General information
Under Argentinian law, debtors are generally able to begin insolvency proceedings when they are no longer able to pay their debts as they are due. The debtor may file for both liquidation and reorganisation through the insolvency proceedings or the reorganisation proceedings. The debtor submits an offer or proposal for payment, which generally consists of debt settlements, to the approval of the majority of the creditors. It should be noted that the filing of insolvency proceedings interrupts the course of credit interest. If the debtor’s proposal is not approved and they simply cannot continue to operate, then the bankruptcy is declared, which is intended to liquidate the debtor’s assets and distribute the revenue among the creditors. In this procedure, the creditors rarely receive dividends.
3.2. Proceedings
Along with the opening of the reorganisation proceedings, a controller authority trustee is appointed to the proceedings, and deadlines are established for the filing of credits. Creditors whose credits have been admitted to the debtor’s liabilities must then approve or reject the debtor’s proposed payment, which will be extended to all creditors. In the event of not obtaining the legal majorities, the debtor’s bankruptcy will be declared. The debtor’s assets will be liquidated and dividends will be distributed among the creditors.
3.3. Required documents
The required documentation is advised to be original, such as the invoices, bills of lading, promissory notes and the power of attorney.
The power of attorney, which represents the client, must be written or translated by a public translator to the local language (Spanish), granted before a notary and legalised by an apostille.
3.4. Expected time frame and outcome
The deadline for submitting credits is usually between two and six months, after the insolvency requirement. Theduration of insolvency proceedings is usually between four and ten years, starting with the payment procedure. The law does not set limits on either the payment plan or the debt settlements.
Argentina is a country located in South America with a population of over 44 million people. The capital city of Argentina is Buenos Aires. Argentina is divided into 23 provinces and one autonomous city, Buenos Aires. The government system of Argentina is a federal presidential representative democratic republic. The official language of Argentina is Spanish. The currency of Argentina is the Argentine peso.
Collecting debts in Argentina can be difficult for foreign businesses due to the country's economic instability and high levels of inflation. It is important for businesses to carefully assess the risk of doing business in Argentina and to have contingency plans in place in case of non-payment.
There are a number of debt collection agencies operating in Argentina, although the industry is not as well developed as in some other countries. The national credit bureau in Argentina is known as the Central de Deudores de la Industria Financiera (CEDIN). Some private credit reporting companies in Argentina include Equifax, Experian, and TransUnion.
Debt collection laws in Argentina are generally uniform throughout the country, although there are some local laws that may apply in certain cases.
There are several benefits to using commercial debt collection services for Argentina:
- Expertise: Debt collection agencies have specialized knowledge and experience in recovering debts, which can be especially useful for businesses that are unfamiliar with the legal and cultural aspects of debt collection in Argentina.
- Time and resources: Hiring a debt collection agency can save businesses time and resources that would otherwise be spent on trying to collect debts themselves.
- Increased chances of recovery: Debt collection agencies often have a higher success rate at recovering debts due to their specialized knowledge and resources.
- Professional communication: Debt collection agencies can handle communication with debtors in a professional and diplomatic manner, reducing the risk of damaging business relationships.
- Legal support: Debt collection agencies can provide legal support and representation in cases where legal action is necessary to recover debts.
- Multilingual support: Many debt collection agencies in Argentina offer multilingual support, which can be helpful for businesses that do not speak Spanish or Italian.
- Flexibility: Debt collection agencies can often offer flexible payment options, such as contingency-based fees, to suit the needs of different businesses.
- Online services: Many debt collection agencies in Argentina offer online services, such as online debt recovery reports, which can be convenient for businesses.
Our debt recovery agency has a very high success rate in Argentina thanks to our multilingual debt collectors located in the country and our 24/7 online debt recovery report website. We have local debt collection managers in the three main cities of Argentina: Buenos Aires, Córdoba, and Rosario.
