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The REDECO (Collecting Bureaus Registry) and the amendment published at the Federal Official Gazette in December 11, 2018.

The REDECO, is a tool from the National Commission for the Protection and Defense of the Financial Services Users (CONDUSEF), which is a public decentralized organism with own legal personality and state, a department of the Ministry of Treasure and Public Credit, which is regulated by the Law for the Protection and Defense of the Financial Service Users and other different General Provisions.

The present note purpose is to address on REDECO’s operation and on the General Provisions applicable to the Financial Entities in matters of Collecting Bureaus.

The General Provisions applicable to the Financial Entities in matters of Collecting Bureaus, regulates the legal nature and functioning of the REDECO, which is a tool available for all financial services users, created to: (i) identify which collecting bureaus are used by the financial entities to collect their loans, and (ii) to file complaints about collecting bureaus actions while claiming the loans granted by financial entities.

In accordance with the definition provided by these General Provisions, the collecting bureaus are: “legal person or entity who acts as service provider to a Financial Entity, with the purpose of payment requirement of a debt in an extrajudicial way, and to negotiate and restructure the loans payment granted by the Financial Entity”. With the use of the Collecting Bureaus by the financial entities, these Bureaus started acting illegally in prejudice to the financial service users, for example: intimidation and threats with prison, requirement of payment to unrelated persons to the debt, phone calls from unknown and unidentifiable numbers, payment requirement on non-business days, and sending look alike judicial authorities documents, etc.

The REDECO was created to prevent and stop these practices, and in December 11, 2018, the General Provisions that regulates REDECO were amended. REDECO has a registry of all Collecting Bureaus, and demands them to properly identify themselves (name, phone number, address, which financial entity hired them, etc.) and forbid them the conducts before mentioned. Any person can file a complaint before the CONDUSEF through the REDECO. CONDUSEF can sanction the Financial Entities with fines within $13,458 MXN to $134,580 MXN, for each breach reported or detected. In the other hand, the Federal Criminal Code establishes penalties within 1 to 4 years of prison and a $50,000 MXN to $300,000 MXN fine to whoever proceeds with extrajudicial illegal collecting actions. In 2016, the REDECO received 28,220 complaints from financial service users, and in 2017 they received 28,652 complaints from users as well, from these 28,220 complaints in 2016, 7,524 matched with 4 types of crimes.

In December 11, 2018, amendments to the General Provisions applicable to the Financial Entities in matters of Collecting Bureaus, along with: a) General Provisions for the Financial Services Providers; b) General Provisions in matters of the Financial Entities Bureau organization and functioning; c) General Provisions in matters of Unfair Terms in Sign-Up Contracts; and d) General Provisions about CONDUSEF self-correction programs; were published at the Federal Official Gazette.

Bibliography consulted:

  • http://www.dof.gob.mx/nota_detalle.php?codigo=5546191&fecha=11/12/2018
  • Law for the Protection and Defense of the Financial Service Users
  • CONDUSEF Annual Statics, 2017.
  • National Commission for the Protection and Defense of the Financial Services Users (CONDUSEF) General Organization Manual.
  • General Provisions applicable to the Financial Entities in matters of Collecting Bureaus.
  • https://www.condusef.gob.mx/Revista/index.php/usuario-inteligente/servicios-financieros/477-ya-conoces-el-redeco
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