She racks up unpaid loans on her pension, faces threats — then wins nearly $6,500 in compensation
Justice confirms “extreme vulnerability” of 80-year-old woman whose loan contracts lacked interest rates or repayment terms.
When someone doesn’t have enough money to purchase something essential, there are typically two options: wait until they can afford it, or take out a loan from a bank. The latter has become increasingly common. While generally secure, borrowing money also carries risks. Interest rates are often high, meaning borrowers end up repaying far more than they originally received.
In addition, reduced income or low retirement benefits can jeopardize a person’s financial stability. That’s what happened to a retired woman in Argentina, who took out several loans but was unable to repay them. However, she has now received significant compensation due to a lack of transparency in the loan agreements.
The woman, 80 years old, had taken out personal loans from Cartasur Cards S.A. to cover basic living expenses, according to LM Neuquén. Over time, her debt snowballed—driven by promissory notes, hidden fees, and refinanced balances. For years, her son-in-law tried to obtain information about the debt, but his efforts were fruitless. That lack of clarity led them to turn to a third-party debt negotiation company.
Once legal proceedings began, the woman received threatening messages and emails demanding repayment. After the case reached court, Argentina’s National Commercial Court in Buenos Aires ruled that the contracts were void. The reason: they lacked key information, including interest rates and the loan repayment system. The court also found that Cartasur showed blatant disregard by continuing to extend credit even after half of the woman’s income was already committed.
Compensation for emotional distress and punitive damages
The judge overseeing the case found that the companies had failed to provide documentation or clear information but continued to demand payment. This constituted a violation of the right to receive information and the obligation to treat customers with dignity. Initially, the judge ordered compensation of 2.5 million pesos (approx. $1,970) for emotional distress and 10 million pesos (approx. $7,890) in punitive damages.
After the companies appealed, the court reduced the amounts. The woman was ultimately awarded 2.6 million pesos (approx. $2,050) for emotional distress and 5 million pesos (approx. $3,945) in punitive damages.
The court also formally recognized the woman’s condition of over-indebtedness and labeled her as “extremely vulnerable.” It ordered that she be removed from any credit risk databases maintained by the companies.
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