Fewer Calls and More Protection for Debtors: New Debt Collection Regulations in Panama

2026-03-20 - 17:24

Yamireliz Chong, a member of the Vamos coalition, highlighted that Bill No. 306, approved on March 19th by the National Assembly, goes far beyond establishing schedules for debt collection, as it includes measures to curb harassment and protect citizens’ privacy. “The project is not limited to schedules, that’s the truth. I’ve seen that all the media outlets are only talking about schedules, but the project is much more than just schedules,” the congresswoman emphasized, explaining the scope of the regulation. Chong noted that the proposal arose from numerous citizen complaints gathered in communities, where people—even those without debt—reported constant harassment by collection agencies. He indicated that the situation is exacerbated by a complex economic climate, where many have lost their jobs or are struggling to meet their financial obligations. “There are people who don’t even have a debt as such and have been victims of constant harassment,” he said, adding that a lawyer consulted reports more than five cases a week related to these practices. REGULATION The congresswoman explained that the project was agreed upon from the beginning with the Panama Banking Association, with the objective of creating a balanced legal framework for both creditors and debtors. Manager is holding Debt collection. Among the points approved, he detailed that specific hours are established for collection procedures: from Monday to Friday from 8:00 am to 6:00 pm and on Saturdays until 3:00 pm, prohibiting contact on Sundays, holidays and national mourning days. However, Chong emphasized that one of the most significant changes is the limitation on the frequency of contact. According to the regulation, once a creditor establishes effective communication with a debtor, they cannot attempt to contact them again that same day through any other means, unless previously agreed upon. PROHIBITION The project also prohibits collection agencies from making visits to workplaces, a practice that —according to complaints received— has led to job losses. In addition, the protection of personal data is strengthened, preventing agencies from contacting family members, neighbors or references to disclose information about the debt. Only in cases where the debtor has not been in contact for 60 days will agencies be allowed to seek contact information through third parties. TRANSPARENCY Another key aspect is the obligation to inform the debtor when their debt is transferred to a collection agency. The original creditor must detail the total amount, including interest and fees, thus preventing arbitrary increases later. Furthermore, it is required that each transferred debt be backed by an individual contract, preventing the mass sale of portfolios without specific documentation. Chong reiterated that the intention of the law is not to encourage non-payment, but to guarantee “adequate, humane and fair” collection processes, both for those who owe money and for those who have the right to recover their money. A Time Limit for Debt Collection Harassment? The Key Points of the Bill Approved by the Assembly The regulation prohibits abusive practices and sets specific times for collection calls, responding to complaints of harassment. The plenary session of the National Assembly approved on the morning of Thursday, March 19, in its third debate, Bill No. 306, an initiative that seeks to limit debt collection agencies and protect the privacy of consumers in the face of harassment complaints. Key points of the standard 1. Regulation of collection agencies The proposal establishes clear rules on how collection efforts should be carried out, including channels, schedules and frequency of contact. 2. Unanimous approval The project, promoted by the deputy of the Vamos coalition, Yamireliz Chong, was approved with 41 votes in favor in the legislative plenary. 3. Limits to telephone ‘harassment’ Specific times are set for collection calls: Monday to Friday: 8:00 am to 6:00 pm Saturdays: 8:00 am to 3:00 pm 4. Prohibition of abusive practices The law prohibits harassment, excessive calls, unauthorized home visits, and the disclosure of debts to third parties. 5. Protection of mental health Behaviors that may affect the emotional or psychological integrity of consumers are restricted. 6. It does not eliminate debt collection During the debate it was clarified that the rule does not seek to prevent collection efforts, but to guarantee that they are carried out without abuse or intimidation. 7. Response to citizen complaints The initiative comes after multiple complaints of alleged harassment in debt collection processes nationwide.