Why Mexico's debt collectors are struggling with Gen Z borrowers
Mexico’s debt collection industry is facing new challenges as younger borrowers struggle with repayments. Generation Z, in particular, has become the hardest group for agencies to recover debts from. At the same time, digital lending and shifting communication habits are forcing the sector to rethink its approach. The Association of Collection Professionals (APCOB) handles around 80% of Mexico’s outsourced debt portfolio. Each year, its members recover between 40 billion and 96 billion pesos for the country’s financial system. But the rise of fintech and digital lending has made the job harder, as looser credit checks lead to higher default rates.
Young adults, especially those born between 1997 and 2012, pose the biggest challenge. Many lack experience in managing credit and fail to grasp the consequences of missed payments. Unlike older generations, they prefer digital communication, such as WhatsApp, over traditional phone calls. To adapt, collection agencies are turning to technology. Artificial intelligence, voicebots, and chatbots now help identify the best ways to reach debtors. The aim is to move away from reactive tactics and focus on preventive, data-driven solutions for those in financial difficulty. Strict rules govern how agencies operate. They can only contact debtors between 8:00 AM and 9:00 PM on weekdays, and until 5:00 PM on Saturdays. Sundays are off-limits. It is also illegal to pursue payments from unrelated third parties or seniors, or to violate borrowers’ rights in any way.
The shift towards digital lending and younger debtors is pushing Mexico’s collection industry to modernise. Agencies are investing in new tools to improve communication and recovery rates. With stricter regulations in place, the focus remains on fair, data-backed strategies to help borrowers resolve their debts.
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