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Notice for financial institutions applying unlimited interest in Corrientes

The Users and Consumers Association (AUC) of Corrientes warns about the “extortion” operations of some personal loan houses in the capital. The main problem, manifested by the debtors, is the impossibility of paying them due to a continuous adjustment of interest.

The economic crisis translates into a decline in people’s purchasing power, a shortage of jobs and an acceleration of inflation of goods and services. As a result, hundreds of people are forced to resort to external financing methods that come from loans or financial houses. An activity that has been growing in Corrientes since 2018, when Mauricio Macri’s government gave the first signs of instability.

The president of AUC Corrientes, Nelson Veas Oyarzo, said at the time that he received between 15 and 20 complaints or requests for advice per week regarding this problem. “Beyond our personal statistics, just look at the long lines that form every day in these credit houses. Most are customers who will surely have the same problems because they do not receive adequate advice”, expressed concern the contact.

The central axis of the problem, according to Oyarzo, is that financial companies are not covered by the regulation of the Central Bank of the Argentine Republic (BCRA). The latest provision of the institute established that from August the limit of compensatory interest for loans linked to credit cards that financial institutions can apply will be 62% per annum. That is, the banks.


However, the AUC argues that these assets are not controlled by the national banking institution and therefore can carry interest of up to 200%.

“Our recommendation is that people avoid falling into despair and in the face of urgency receive adequate advice to take out a loan. There are many finance companies that are extortionate, as their interest rates are extremely high,” he warned. the official.

Loans of up to $ 300,000 on the spot, with minimum requirements, are some of the most enticing promotions that drop thousands of “cheaters” into a vicious cycle. Other strategies are legends like: “the last installment of the gift” or “starts paying after 60 days”.

“When it comes to getting into debt, the future debtor must know well what the rules set out in the contract are. And, above all, keep in mind that it is not a question of fixed installments, but that the interest amounts change constantly,” Oyarzo observed.

The UAC offices are located in San Juan 1182 and work from Monday to Friday, from 9:00 to 13:00 and from 16:00 to 20:00. The contact telephone number is 4-46-79-70.

Complaints and requests for advice on non-payable taxes related to finance are second among the common problems handled on site. Firstly, the complaints against the DPEC for the outsourcing of debt collection. In short, the state-owned company delegates the legal process for obtaining payment to several law firms. And the debtors ultimately have to pay the debt and the service of the law firm.

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