Federal Court No. 2 in La Plata admitted a collective lawsuit challenging the deregulation of credit card interest rates under emergency decree DNU 70/2023. Brought by lawyer Emanuel Desojo on behalf of affected consumers, the action targets uncapped penalty interest and the elimination of regulatory oversight by the Central Bank of Argentina.
The Bottom Line
- The Legal Challenge: The lawsuit targets Title II, Chapter II of DNU 70/2023, seeking to declare uncapped penalty interest rates and relaxed card issuance rules unconstitutional.
- Market Delays: The case has spent over two years in litigation due to multiple procedural challenges and jurisdictional disputes raised by the national state.
- Pending Relief: The court has ordered the case to dispatch to rule on a preliminary injunction that could temporarily suspend high penalty rates for millions of debtors.
Legal Recognition After Two Years of State Resistance
Federal Court No. 2 in La Plata officially admitted the action as a collective process, recognizing attorney Emanuel Desojo as the legal representative for credit card users and consumers. The Association of Lawyers for Social Justice, known as AJUS La Plata, reported that the decision marks the first major procedural advancement after more than two years of resistance by the national government. The collective action was originally initiated in April 2024 to contest the deregulation framework introduced by DNU 70/2023.
Es algo que nos costó dos años y medio de litigar contra el Estado, que permanentemente nos puso la trabas y utilizó todas las herramientas legales posibles para que esta resolución no salga, incluso presentando recursos y apelaciones que eran manifiestamente improcedentes,
stated Desojo regarding the prolonged litigation process.
During the two-year procedural battle, the state attempted multiple legal maneuvers to stall the case. These included filing jurisdictional inhibitor actions in Buenos Aires, raising exceptions for lack of standing, and submitting extraordinary federal appeals. The federal court rejected all of these defense motions, clearing the path for the current review of the injunction.
Challenging the Deregulation of Financial Contracts
The core of the lawsuit focuses on the dismantling of consumer protections established prior to the December 2023 emergency decree. DNU 70/2023 removed the historical 50% cap on penalty interest rates that financial institutions could charge on delinquent balances. Furthermore, the decree stripped the Central Bank of Argentina of its disciplinary enforcement powers and eliminated the requirement for standard contracts to receive prior regulatory approval.
Desojo pointed out that the removal of these oversight mechanisms creates a severe imbalance between corporate lenders and individual borrowers. Entonces ahora ya, como bien dice el presidente, es un problema entre particulares,
Desojo noted, describing how the state withdrew from mediating standard financial agreements. Tenés una persona jurídica, como un banco, con una tarjeta de crédito, con una capacidad de poder y de imposición de cláusulas contra una simple persona que va a buscar una tarjeta de crédito.
The lawsuit also addresses the security and identification standards for newly issued payment instruments. According to the legal representatives, the deregulation allowed entities to issue cards without mandatory user identification or standardized security features, leaving consumers vulnerable to predatory financial terms.
Awaiting Injunction Rulings Amid Rising Consumer Debt
With the collective process formally admitted, the file has been passed to dispatch for the presiding judge to rule on the pending precautionary measure. If granted, the injunction would temporarily suspend the application of uncapped penalty interest rates while the main constitutional challenge moves toward a final verdict.
Legal advocates emphasize the urgency of the upcoming decision as household default metrics climb across the financial sector. The lawsuit aims to provide immediate financial relief to millions of consumers struggling under accumulating debt burdens attributed to unregulated interest charges rather than initial principal amounts.
| Litigation Milestone | Details |
|---|---|
| Case Initiation | April 2024 |
| Challenged Regulation | DNU 70/2023 (Title II, Chapter II) |
| Legal Representative | Emanuel Desojo (AJUS La Plata) |
| Current Procedural Step | Pending preliminary injunction ruling |
Lo que viene ahora es que la acción se inscriba en el registro de procesos colectivos y que el juez de la causa dicte la medida cautelar que provisoriamente suspenda esos intereses que está cobrando en forma usuraria para después, una vez que se llegue a la sentencia, sí dicte directamente la inconstitucionalidad del decreto 70/2023,
concluded Desojo.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
