Report 2025
Rethinking debt collection in Brazil, Mexico and Colombia
A new playbook for modernising collections in LATAM
Unsecured consumer credit is booming across Latin America. But so are the pressures on creditors.
Challenge one
👉 77.5% of families in Brazil are in debt
👉 60% delinquency rate reported by Brazilian fintechs in 2024
👉 28% of household income in Colombia is spent on debt payments
👉 46% jump in credit card balances in Mexico, in just one year
Without a customer-first approach, lenders face rising losses and reduced retention.
Challenge two
Regulation is tightening across the region
Governments across LATAM are implementing stricter laws to ensure fairer, more transparent debt collection. Compliance isn’t optional — and regulators will only get tougher.
🇧🇷 Brazil: Over-Indebtedness Law (2021)
- Borrowers can request court-supervised debt renegotiation, protecting minimum income levels
- Lenders must clearly disclose all loan terms to avoid future disputes
- Lawsuits are pushing to tighten these protections even further — change is coming fast
🇲🇽 Mexico: PROFECO, LFPC, Penal Code
- Contact is only allowed from 7am to 10pm, with abusive language and intimidation banned
- Debt-related data can’t be shared, preserving borrower privacy and reputation
- Harassment and deception in collections can result in criminal penalties, including prison
🇨🇴 Colombia: Law 2300 (2023)
- Contact requires clear, ongoing consent per channel (e.g. phone calls, SMS, WhatsApp)
- Creditors can’t reach out more than once per day, or via multiple channels in one week
- Tight rules aim to curb harassment and uphold consumer dignity during financial stress
Challenge three
Consumers expect frictionless digital experiences, not pressure
It’s not just the new standard. Digital collections have been proven to win trust and results.
👉 86% of consumers prefer digital self-serve debt tools
👉 25% increase in resolution rates of accounts that are 30+ days past due
👉 +15% cost savings for collections
👉 +32% email payment conversions with AI personalisation
Challenge four
Outdated IT systems are blocking progress
Delivering modern collection experiences requires a strong tech foundation. But many institutions are stuck in the past.
🚩 Tools that prevent efficiency
Many teams still manage collections in Excel. These outdated tools make it hard to scale, automate or optimise performance.
🚩 Lack of actionable data
Legacy systems often lack a single customer view, making segmentation and personalisation nearly impossible.
🚩 Legacy systems limit innovation
Brittle IT infrastructure makes it tough to integrate modern channels — like chatbots or self-serve portals — that today’s consumers prefer.
