A recent decision of the Argentine National Commercial Court of Appeals illustrates the growing judicial scrutiny of customer treatment by financial institutions, particularly in the context of debt collection.
The claimant argued that outstanding credit card debt had already been settled. While the Court ultimately rejected that substantive claim, it nevertheless held the bank liable for breaches of its statutory duties regarding consumer information and fair treatment.
The Court found that the bank had failed to respond adequately to the customer’s enquiries and had engaged in persistent and inappropriate collection practices, including repeated telephone calls, text messages and communications sent to family members that misleadingly suggested the existence of judicial proceedings.
As a result, the Court awarded compensation for non-pecuniary damages and imposed substantial punitive damages.
The judgment reinforces an important principle under Argentine consumer law: even where a debt is valid, financial institutions must ensure that collection practices comply with statutory standards of transparency, dignity and fair dealing.
For banks, fintech companies and debt collection agencies operating in Argentina, the decision highlights the importance of robust compliance policies governing customer communications, complaint handling and collection procedures. Regulatory and litigation risks may arise not only from the underlying financial relationship but also from the manner in which customers are treated throughout that relationship.