PPD independents submit bill to regulate CAE debt collection

The independent caucus of the Party for Democracy introduced a bill to resolve disparities in criteria for collecting debts under the State Guaranteed Credit.

The initiative seeks to prohibit the General Treasury of the Republic from using the Tax Code to collect CAE debts or similar credits where the State acts only as guarantor. Instead, collections should proceed in civil courts under a standard executive judgment.

The bill also proposes interpreting article 57 of the Labor Code to extend the non-seizability of wages and states that ongoing collection procedures would be void after the law is published.

Caucus deputy leader Héctor Ulloa noted that the disparity in judicial interpretations requires an express legislative solution. Deputy José Montalva added that student debts must be paid, but not collected as if they were taxes.

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Illustration of Chilean deputies introducing a bill to protect CAE debtors' wages from seizures in a congressional setting.
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Opposition introduces bill to shield wages of CAE debtors from seizures

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Opposition deputies introduced a bill on Monday to prevent the Treasury from seizing funds in bank accounts of CAE debtors. The measure aims to extend wage protection even after deposits are made.

Chile's General Treasury (TGR) announced on Monday the start of collecting overdue Crédito con Aval del Estado (CAE) debts, affecting more than 550,000 people. The plan segments actions by monthly income, with judicial measures for those earning over 5 million pesos and payment plans for others. Education Minister María Paz Arzola backed the effort to recover public funds.

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Education Minister María Paz Arzola stated there were prior warnings to CAE debtors before collections by the Treasury General of the Republic. The Socialist Party rejected the severity of these measures.

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The Party of the People confirmed on Sunday that it will deliver its 13 votes to approve the idea of legislating the megareform promoted by the government. The deal was revived after including the elimination of VAT on medicines and diapers in the miscellaneous law.

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Leaders of the DC, PC, FA and PPD questioned on Saturday the statements by Finance Minister Jorge Quiroz about former President Gabriel Boric in the CAE collection debate.

 

 

 

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