Debt Collection Agency Mexico: Conciliación Before Litigation
Debt Collection Agency Mexico: The Conciliation-First System
Why Mexico Is Not Like the US
Mexico shares a border with the United States but almost nothing else when it comes to commercial debt collection. The legal system is civil law (not common law), enforcement mechanisms are slower, and the business culture places significant weight on personal relationships and negotiated resolution.
Foreign creditors who approach Mexican debt collection with US assumptions — aggressive demands, rapid legal escalation, credit bureau threats — find themselves stuck. The system is designed for conciliation first, and creditors who work within that framework recover more than those who fight against it.
How Mexican Collection Works
Phase 1 — Amicable contact. A Spanish-speaking collector based in Mexico contacts the debtor. The initial approach is professional and relationship-aware — Mexican business culture values personal connection even in adversarial situations. Resolution rates for debts under 12 months: approximately 40-50%.
Phase 2 — Formal demand (requerimiento de pago). A written demand citing the specific debt, applicable interest under Mexican commercial law (Código de Comercio), and a deadline for payment. Under Article 362 of the Código de Comercio, commercial interest rates can be contractually agreed — if not specified, the legal rate applies.
Phase 3 — Conciliation. Before full litigation, Mexican commercial disputes often go through conciliation — either private or through PROFECO (Procuraduría Federal del Consumidor) for applicable cases. This mediated approach produces faster results than court proceedings.
Phase 4 — Juicio ejecutivo mercantil. Mexico's fast-track commercial enforcement procedure. If the creditor has a qualifying document (a signed contract, accepted bill of exchange, or promissory note — pagaré), the judge can order immediate attachment of the debtor's assets before the full hearing. This is Mexico's most powerful creditor tool — but it requires proper documentation from the outset.
Phase 5 — Ordinary litigation (juicio ordinario mercantil). For disputed claims without qualifying documents. Timeline: 12-24 months. Mexican courts are thorough but slow, and enforcement of judgments can add additional months.
Key Legal Parameters
Statute of limitations: 10 years for commercial claims under the Código de Comercio. One of the longest in the Americas.
The pagaré advantage. A signed promissory note (pagaré) under Mexican law creates a título ejecutivo — a document that allows the creditor to skip ordinary proceedings and go directly to executive enforcement. If you're doing business in Mexico, build pagarés into your contract structure.
Cross-border enforcement: Mexico is not party to many reciprocal enforcement treaties. Foreign judgments require homologation (recognition proceedings) in Mexican courts, which adds 6-12 months. For cross-border claims, ICC arbitration with a Mexico City seat produces awards enforceable under the New York Convention.
Mexico's 10-year limitation gives creditors time, but the conciliation-first culture means earlier action produces better results. A Mexico-based agent who speaks Spanish and understands the juicio ejecutivo path is essential.
