Mexico’s Supreme Court (SCJN) has ordered all lower-court judges to review ex officio whether interest rates charged by banks on credit cards and loans are usurious, a decision that immediately shifts the burden of proof in consumer credit disputes. In a plenary session on 23 June 2026, the court resolved two amparo cases by ruling that judicial authorities must analyse if ordinary and default interest is excessive and, where necessary, reduce it prudentially. The ruling applies to both individuals and legal entities, meaning companies can also seek protection against abusive rates.

The court grounded its decision in Article 21.3 of the American Convention on Human Rights, which prohibits usury and economic exploitation, and in Article 1 of the Mexican Constitution, which obliges all authorities to protect human rights. Judges must now weigh factors including the loan amount, repayment term, existence of guarantees, the parties’ characteristics, market conditions at the time of contracting, and a comparison with the prevailing Costo Anual Total (CAT). The SCJN revoked previous sentences and instructed collegiate tribunals to conduct a fresh, exhaustive analysis of the contested interest charges.

Viewed from Buenos Aires, the Mexican ruling aligns with a broader Latin American push to strengthen consumer financial protections. Argentina’s central bank (BCRA) recently clarified that cardholders can cancel a credit card at any time, even with outstanding debt, and that banks cannot demand full repayment as a precondition. The debt continues to be paid in the original instalments, but no further maintenance fees are charged. Colombian financial educators, meanwhile, warn that credit card annual interest rates sit near the usury ceiling of over 28 percent, urging consumers to treat cards as a payment tool rather than a financing mechanism.

In the United States, the approach to overindebtedness remains market-based. Debt settlement firms negotiate with creditors to forgive 30 to 50 percent of balances, meaning a borrower with $45,000 in credit card debt might see $13,500 to $22,500 written off. However, such relief typically requires accounts to become delinquent, damaging credit scores and potentially triggering tax liabilities on the forgiven amount.

The next factual milestone will be the first rulings from Mexican collegiate tribunals applying the SCJN’s criteria, which will reveal how aggressively judges curb interest rates in practice. In Argentina, the BCRA will monitor bank compliance with the cancellation rule, and consumers can escalate complaints if institutions refuse to process a card closure.