New instrument ensures safe loan installment collection in Argentina
The Central Bank of the Argentine Republic (BCRA) has introduced a new instrument, Collection with Transfer (CCT), to ensure safe and transparent collection of loan installments. This service is expected to be available from August 31, 2026.
Safeguarding borrowers and promoting competition
The Collection with Transfer (CCT) instrument introduces robust features to protect individuals and enhance the payment ecosystem.
It mandates fixed and equal loan installments, alongside a strict 30 percent installment-to-income ratio limit at origination to prevent over-indebtedness.
Abusive collection practices are curtailed by restricting attempts to one initial try and two retries within 96 hours.
Crucially, explicit, one-time customer consent is guaranteed before any account debit, complemented by electronic notifications from lenders the business day prior.
Individuals can also immediately withdraw their consent.
The CCT is exclusively for financial institutions and non-financial credit providers (PNFCs) authorized by the BCRA.
A remuneration scheme with a minimum 0.6 percent tariff for lenders encourages competition.
Fraud liability is assigned to the lender, aligning incentives for responsible use and promoting interoperability through the new CCT acceptor role.
Global inspiration, local innovation
The CCT's design drew inspiration from international models like Pix automático in Brazil, AutoPay in India, and PayTo in Australia, alongside proposals from the local payment ecosystem in 2025.
This initiative underscores the BCRA's commitment to expanding credit access, fostering innovation in payment methods, and enhancing user protection.
It also aims to increase transparency in financial operations and strengthen an open finance system, aligning with international best practices.
The instrument is designed for future extension to other periodic collections, such as public services, following its initial launch for loan installments.
A necessary step for financial inclusion
This initiative addresses critical gaps in consumer protection and transparency within Argentina's lending landscape.
By standardizing collections and preventing abusive practices, the BCRA fosters trust and encourages broader participation in formal credit markets.
While the 30 percent income limit is a strong safeguard, its effective enforcement will be crucial for truly mitigating over-indebtedness.