We are in favor of the initiative, since it will formalize the payroll credit by making the employers, the worker and the financial entity co-responsible, said Juan Manuel Ponce Díaz, regional president of the Association of Multiple Purpose Financial Institutions in Mexico (Asofom), when referring to the reform to regulate Payroll Credits with Delegated Collection.
“Of all the formal credit granted in the country, only 2% of Mexicans use payroll credit, when it is 24% with a credit card, 7% with mortgages and 3% with personal loans.”
Payroll credit is much cheaper and more agile than the informal/illegal ones, even cheaper than several of the formal ones, he pointed out.
“What is needed is to better inform the benefit, since the payroll loan is the cheapest consumer product that exists compared to credit cards or personal loans,” he said.
Contrary to what economic specialists have pointed out in not agreeing with the reform initiative to regulate payroll loans with delegated collection, Juan Manuel Ponce Díaz, regional president of the Association of Multiple Purpose Financial Institutions in Mexico (Asofom) , supports it considering that it would be much cheaper and more agile.
“We are in favor of the initiative because it will formalize the payroll credit making the employer entities, the client (worker) and the financial entity jointly responsible,” he pointed out.
As has been reported, this initiative of payroll loans with delegated collection was approved in the Chamber of Deputies with the majority of Morena’s legislators and the opposition vote against. It was sent to the Chamber of Senators for review before being applied.
The initiative proposes that companies may, before depositing the salary, deduct from their workers the pending payments for payroll loans with the Multiple Purpose Financial Companies (Sofomes).
Specialists in national and local financial issues have spoken out against it. María del Carmen Cortés, for example, in her column for the newspaper “Excélsior” commented that this initiative was severely criticized by the opposition parties that voted against it because it would allow financial institutions to collect payroll loans directly from the salary of workers with a cap of up to 40% of salary, which employers would have to withhold on a mandatory basis.
Marisol Cen Caamal, an editorialist for the Diario, wrote that this initiative goes against article 110 of the Federal Labor Law, which establishes the prohibition of discounts in workers’ salaries except in exceptional cases, such as the payment of debts contracted with the employer for advance wages and payment of alimony in favor of alimony creditors.
The financial consultant considers that, in addition, the way in which many loans are offered is misleading, they make it seem like support that can be easily accessed.
“It makes me very angry to see financial institutions that in their advertising talk about granting financing to support small entrepreneurs, but the rate they charge is 120% per year. There is no way a small business can earn returns that high to pay those fees,” he stated.
“El Economista” in its financial section announced that the Association of Banks of Mexico (ABM) considered that the initiative should be reviewed in order to provide mechanisms that allow workers to decide with which financial institution they contract a payroll loan.
Ponce Díaz, as regional president of Asofom, said that they are in favor of the initiative because of all the formal credit granted in the country, only 2% of Mexicans use payroll credit, 24% use a credit card, 7% mortgage and 3% personal loans.
“Payroll credit is much cheaper and more agile than informal/illegal credits and also cheaper than several of the formal ones, with this bill, greater inclusion and use of credit should be achieved for the benefit of citizens and with it of development,” he said.
The former president of Canacintra in Yucatan explained that with this initiative the client (employee) requests a loan of his own free will from the entity that employs him (employer), the financial entity has an agreement to be the credit provider and have the information that they are requested by the authorities, once the credit is authorized, it is deposited.
In his opinion, this is a very complete initiative, “what is missing is to better inform the benefit for all, since payroll credit is the cheapest consumer product that exists compared to credit cards or personal loans ”.— DAVID DOMINGUEZ MASSA
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