Margarita Zavala condemned initiative that authorizes banks to collect credit debits, direct from workers' wages

The deputy of the National Action Party (PAN), Margarita Zavala, condemned the initiative presented by Morena's legislators and which was approved in general and in particular by that party and its allies, so that banks can collect payroll loans from employers in case the worker has debts.

Through her Twitter account, the PAN legislator wrote: “Morena and the 'labor' party approved the embargo on workers' wages through payroll retention. Up to 40% can commit and will be withheld from the payroll, this agiotista figure will practically end up in what were the raya shops” (sic).

On Thursday, March 17, the deputies generally endorsed the amendments to the general laws on Credit Securities and Operations, Organizations and Auxiliary Credit Activities, and the Law on Protection of the User Protection of Financial Services; in order to regulate payroll credits with delegated collection.

This means that banks can collect directly from the workers' wages (with the consent of the employee), the debts they have derived from payroll loans. That is, companies will be able to withdraw the corresponding part of the loan and transfer it to the financial institution even before depositing the salary in the employee's account.

During the discussion of the initiative presented by the Morenoist and union leader, Pedro Haces, it was approved last year in the Senate and sent to the Chamber of Deputies, who approved reducing the worker's indebtedness from 45% to 40% of their ability to pay.

It also seeks to allow the revocation of delegated collection when the total cost of credit, including interest, commissions and annuity, exceeds 1.2 times the quarterly market average when acquiring the credit.

“This decision seeks to balance the conditions of workers and creditors, provides security and protection measures to prevent usury,” said Morena's deputy Daniel Gutiérrez.

But opposition legislators have warned that the third section entitled “On Payroll Credit with Delegated Collection” included in the General Law on Titles and Credit Operations”, benefits the institutions that granted the payroll credit and not the employees, since it allows a high percentage of the salary to be garnished.

However, President Andrés Manuel López Obrador condemned the initiative presented by his party and assured that he would veto it, since - he considered - the workers' salary “is sacred”.

López Obrador asked federal legislators to be aware and urged them to reflect their vote on this issue, and asked the Congress of the Union to thoroughly review the reforms made to the general laws on securities and operations of credit, organizations and activities auxiliary to credit, and the Law on Protection of Financial Services User Advocacy.

“We reject the withholding of workers' wages. Wages are a right and should not be garnished by any bank,” said the president.

“I don't agree with that reform, I don't think workers' wages should be garnished under any circumstances. The salary is sacred, it is what allows the sustenance of families, and you cannot use the payroll, appropriate the worker's payroll. No bank should do it, no financial institution,” he said during his morning conference on Friday, March 18, held in Minatitlán, Veracruz.

López Obrador stressed that the opinion has not yet been finally approved because it will have to return to the Senate, so he said “I hope the Senators review it well” since - I emphasize - some maintain the habit of not reading well the initiatives they vote on and it is not always in the best interest of the people.

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