Debt Collection Agency Mexico: Juicio Ejecutivo Mercantil & NAFTA Legacy
Debt Collection Agency Mexico: Latin America's Second-Largest Market
The Mexican Framework
Mexico is the world's 12th-largest economy and the United States' largest trading partner — meaning American creditors face Mexican collection challenges more frequently than any other Latin American jurisdiction. The good news: Mexico's commercial legal framework is functional and provides creditors with effective tools. The complexity: Mexico's federal structure means 32 state court systems plus federal courts, each with procedural variations.
For US creditors specifically, the USMCA (successor to NAFTA) trade relationship means the volume of cross-border B2B disputes is enormous — and growing. Understanding the Mexican collection system isn't optional for companies selling into Mexico.
The Collection Process
Requerimiento de pago (payment demand). Formal demand citing the factura (invoice), contract terms, and interés moratorio (default interest). Mexican commercial culture responds to professional demands — particularly from recognised agencies with a Mexico City or Monterrey presence. Recovery rates for commercial claims under 12 months: approximately 50-60%.
Juicio ejecutivo mercantil (commercial executive procedure). Mexico's most powerful creditor tool for documented claims. For debts supported by a título de crédito — pagaré (promissory note), cheque, or letra de cambio (bill of exchange) — the creditor can file directly for execution under the Código de Comercio. The court can order embargo (asset seizure) at the moment of filing, before the debtor responds. This immediate embargo is the key advantage of the executive procedure.
Juicio ordinario mercantil (ordinary commercial procedure). For claims without título de crédito — based on invoices, contracts, or purchase orders — the ordinary commercial procedure applies. Timeline: 12-24 months through first instance. Appeals can extend to 3+ years.
Federal vs. State Courts
Mexico City's commercial courts handle the majority of significant B2B claims. Monterrey (Nuevo León) and Guadalajara (Jalisco) are secondary commercial centres. Federal courts handle cases involving federal law or parties in different states. State courts handle local commercial disputes. The choice of jurisdiction significantly affects processing time — Mexico City courts are generally faster than courts in smaller states.
Key Parameters
Statute of limitations: 10 years for commercial obligations under the Código de Comercio (Article 1047) — one of the longest in Latin America. Pagarés and cheques have shorter periods (3 years and 6 months respectively).
Interest: Contractual rate applies if specified. Otherwise, statutory commercial interest rate: 6% annually (Código de Comercio Article 362) — relatively low by Latin American standards.
Currency: Mexican courts can enforce obligations in the original currency. US dollar-denominated contracts are common and enforceable.
Mexico's juicio ejecutivo mercantil with immediate embargo makes documented claims efficient to enforce. The 10-year limitation period gives creditors more time than most Latin American jurisdictions — but early action still produces better recovery rates.
