New Rules Apply to Remote Consumer Debt Collection and Customer Care

The Secretariat of Domestic Trade (the “SDT” for its acronym in Spanish)—Argentina’s enforcement authority in consumer matters—handed down a series of compulsory measures for suppliers of goods and services to collect debt, provide remote support, and communicate with their clients. The measures came down via Resolution No. 1033/2021 on October 12, 2021.

 

a) Collections and Abusive Debt Collection Practices

Under these measures, suppliers have a duty to inform consumers, in a detailed, adequate, and sufficient manner, all aspects of the claimed debt: the full name or business name of the bondholder and the assigned extrajudicial collection manager; complete information about the debtor; the amount owed and where the debt originated from; and date when the debt was incurred, when the debtor defaulted, and when the statute of limitations expires, among other information.

The consumer or alleged debtor will be able to request a zero-debt certificate if the claimed debt is inexistent or time-barred. When applicable, the certificate must be issued by the collection manager within 24 hours upon request.

The SDT identified certain common abusive collection management practices and provided a non-comprehensive list of them. In general terms, practices that aim to degrade or intimidate the alleged debtor and using third parties outside the consumer relation (such as relatives, neighbors, employers) to target the debtor (such as approaching the debtor in public places or commercial establishments and disseminating information in the mass media) are generally prohibited.

Contacting consumers with pre-recorded debt collection, goods or services promotion or other commercial or advertising messages has been prohibited.

 

b. Inquiries and Claims

Suppliers are also now required to make a free and efficient customer service hotline and email address available for inquires and claims. These must be visibly displayed on the supplier’s website, platform or application and listed in the supplier’s terms and conditions or invoices.

The customer service hotline is subject to the following requirements: (i) its operating hours have to match those of in-person customer service, (ii) customers have to be able to opt-in to human assistance; and (iii) long wait times, interruptions and promotion of unsolicited goods or services must be avoided.

Suppliers are required to accept inquires and claims by phone or other electronic or digital means. After which, they have to send the customer an inquiry or claim number by email for follow-up.

Suppliers must reply to inquiries within 3 business days and to claims within 10 business days. Once the procedure has been completed, they are required to notify the consumer. That notification can be submitted by e-mail only if the consumer opted into email notifications when initiating the inquiry or claim. While the claim is being resolved, suppliers cannot charge customers for the interrupted service.

The SDT also identified abusive and prohibited inquiry and claim submission practices, such as calling customers from private numbers (i.e. meaning caller ID is blocked); on non-business days and hours or holidays; calling them at their place of work, study, recreation, worship or gym; and calling them at the homes of relatives, neighbors, acquaintances, or their third parties outside the consumer relation.

Suppliers now have an obligation to draft a comprehensive assessment and written customer service report by an internal or external auditor.

All personnel providing personalized customer care must complete a specialized industry or sector-specific training to ensure that care is adequate. Suppliers are responsible for providing their personnel with all necessary ongoing training.

In addition to claims by individual consumers, suppliers must also receive claims and inquiries from consumer associations on their behalf. To that end, representation is to be demonstrated by sending an email from the official e-mail address of the association as duly registered with the National Registry of Consumer Associations.

According to the SDT, the resolution seeks to reinforce and strengthen the basic rights of consumers in the digital environment, primarily the right to receive current, adequate, and truthful information and the right to receive dignified, equitable and quality treatment (sections 4 and 8 bis of Consumer Protection Law No. 24,240, the “CPL”).

It also aims to promote the implementation of good commercial practices, prevent conflicts, and encourage suppliers to efficiently manage and resolve conflicts, with strong emphasis on eliminating abusive debt management and customer service practices.

Once again, the SDT has expressly exempted micro, small and medium-sized companies in accordance with Law No. 25,300 and grants suppliers 6 months from the date of publication of the resolution (Official Gazette 10/12/2021) to adapt their customer service to the new measures.

Violations of this resolution are subject to the sanction stipulated in the provisions of the CPL.

 

 

This article is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.