Loan Originated via WhatsApp Leads to Debt Dispute & $500,000 Ruling
A public employee in San Antonio Oeste, Argentina, successfully sued a mutual association, a bank, and a related company after being incorrectly flagged as a high-risk debtor following loans secured through WhatsApp messaging. The woman was awarded 500,000 pesos (approximately $550 USD, depending on exchange rate) plus interest for moral damages.
The dispute began after the woman obtained two personal loans through a direct advisor at the Provincial Union Mutual Association (UPAM). She signed contracts for a 36-installment loan and a 12-installment loan, both with repayments automatically deducted from her salary.
Later, when attempting to secure further credit, she discovered her name appeared in the Central Bank of the Argentine Republic’s debt database as a debtor in “situation 4” - a serious delinquency category – and previously as a category 2 debtor. She had no prior relationship with Banco del Sol, the entity reporting the debt in situation 4.The woman filed a claim in the Peace Court of San Antonio Oeste, presenting Central Bank reports as evidence and alleging insufficient facts provided by both UPAM and Banco del Sol, a violation of Argentina’s Law 24,240 regarding consumer financial protection. She sought the nullification of a contractual clause, compensation for moral damages, and a precautionary measure.
Banco del Sol responded by offering to cancel any existing or future debt linked to the woman and provided a certificate of debt clearance. They confirmed they had acquired UPAM’s loan portfolio.
The court determined the woman had contracted the loans with UPAM,and that salary deductions were made,subsequently transferred to Banco del Sol. Though, the court found both UPAM and Banco del Sol failed to adequately inform her about the terms of the loans, including the possibility of the debt being transferred. The court emphasized the adhesion contract nature of the agreements, leaving the consumer with limited ability to fully understand the terms.
The ruling acknowledged the damage to the woman’s financial reputation and the distress caused by her unexpected inclusion on the BCRA’s debtor list, justifying compensation for moral damages. While Banco del Sol corrected the information after the lawsuit was filed, the court stated this action didn’t negate their initial failure to provide adequate information.
Ultimately, the court ruled against UPAM, Banco del Sol SA, and Grupo Unión SA, ordering them to jointly pay the woman 500,000 pesos plus interest.
