Argentina's worsening household payment capacity has been accompanied by a second problem: aggressive extrajudicial collection practices. Debtors describe calls at all hours, threats of home visits, messages sent to relatives or workplaces and papers presented as if issued by an authority. The pressure sometimes disrupts family, employment and emotional stability while people try to refinance obligations they can no longer meet.
A 33-year-old woman from La Matanza said she turned to an informal lender after the disability pension received for one of her children was suspended. She borrowed the equivalent of about US$530 for everyday expenses; in under three months the obligation rose to roughly US$3,600 through refinancing she did not understand. Further borrowing left her owing about US$13,100 to seven lenders while supporting three children by selling food.
The problem extends beyond neighborhood lenders. Non-bank entities, including digital wallets and instant-credit companies, account for 90.6% of people listed as delinquent, although they represent 26.2% of the total overdue money. Central Bank data show that people with at least one unpaid debt remained near 13.6% until October 2024 and then rose to 26.6% in July 2026. The irregular amount reached 18%.
The share of households using finance has not risen in the same way and has remained around 59% since 2016. What changed was the ability to repay, affected by weaker income and interest rates that in several segments stand well above inflation. Credit often covers food, utilities and routine expenses, so costly refinancing can turn an immediate need into a sequence of new obligations.
Lawyers and debtors' organizations report practices ranging from impersonating prosecutors or police officers to sending false court notices and announcing attachments that were never ordered. One man received 164 emails and 48 WhatsApp messages in two days after using an unregistered lending application. The platform offered a 100% rate for eight days and added 5% per day of delay without requiring proof of solvency.
Article 175 bis of the Criminal Code defines usury when a person exploits another's need, inexperience or lack of judgment to impose clearly disproportionate interest or economic advantages. It also covers those who acquire or seek to enforce a loan knowing it is usurious. Individual claims may improve repayment terms or stop abuses, but many families lack time, money and assistance while facing basic emergencies.
Buenos Aires City legislator Leandro Santoro introduced a bill to change the regulation of extrajudicial collection. It limits the number of contacts, excludes nights and Sundays, bars approaches at workplaces or to acquaintances and establishes penalties for simulated documents and threats. At national level, Javier Milei's government maintains that debt stems from private decisions and does not plan a general debt-relief program.
The immediate debate therefore has two fronts: supporting people under pressure and creating effective supervision. Organizations say the first response is often emotional rather than legal because those seeking help arrive with fear, sleeplessness and despair. Legislators must define prohibited conduct, the authority responsible for monitoring agencies and applications, and channels through which victims can report abuse without further exposure.
