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Tuesday, March 21, 2023

The Broad Front presented a project to restructure debts for low-income people

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The bench of senators broad front (FA) introduced a bill proposing a debt restructuring to low-income people economic before abusive payment methods by financiers and lenders.

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The opposition political force proposed a procedural formula that seeks to contemplate and be effective both for debtors who are not able to honor their obligations, and for creditors who cannot recover the money lent.

Those who are covered by the project are those debtors for consumer loans with income less than three monthly minimum wages over a year, and that do not have real estate assets. In turn, if you own a property, it must be valued below the 600,000 Indexed Units (UI) —almost $87,000— and be intended exclusively for housing.

If the project is approved, the judicial process of restructuring could be initiated by either of the two parties involved. The step prior to this consists of an administrative hearing before the Consumer Defense Area that will seek to reach an agreement Between the parts, Otherwise, a restructuring will be forced. debt through the courts.

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A judge must approve a restructuring that must be greater than the payment of 40% of the debt, but less than 40% of the debtor’s monthly income. In the event of the existence of multiple creditors, those who represent at least half of the liability in question must give the guarantee to make the proposal viable.

In turn, the FA explained that creditors may not commit “abusive” collection actions, use false information, or violate the privacy of people, seeing obliged at all times to announce the effective interest rate annualized.

The FA seeks support in Cabildo Abierto

In 2020, Town meeting (AC) proposed a similar initiative for the creation of a debt restructuring process for individuals. From the opposition party, they understand that CA could look favorably on accompanying the current proposed project, which, in addition to being similar, adds a “legal shield” for debtors. This agreement would guarantee the votes for its approval in the Parliament.

From the group led by Guido Manini Rios They are willing to agree with anyone as long as this problem, which affects close to a million Uruguayans, of whom 633,000 are considered unrecoverable debtors before him Central Bank of Uruguay (BCU), can be resolved through parliament, even more so, after the pro-government caucus itself turned its back on it.

Source: Ambito

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