What Happened
On March 19 the National Assembly approved Bill No. 306 in its third debate, a measure promoted by Vamos coalition deputy Yamireliz Chong that seeks to regulate debt collection practices and strengthen protections for consumers. The plenary voted 41 in favor of the proposal, which sets schedules, contact limits and data safeguards for collection agencies.
Key Provisions
The regulation establishes specific hours for contact: Monday through Friday from 8:00 am to 6:00 pm and Saturdays until 3:00 pm, while prohibiting collection contacts on Sundays, public holidays and days of national mourning. It also limits frequency of contacts — once a creditor establishes effective communication with a debtor, they may not attempt to contact the debtor again that same day by any other means unless there is prior agreement.
The bill bans workplace visits by collection agencies, restricts disclosure of debt information to family members, neighbors or references, and allows third-party contact to obtain whereabouts only after the debtor has been unreachable for 60 days. It requires the original creditor to inform the debtor when a debt is transferred to a collection agency and to provide a breakdown of the total amount including interest and fees. Each transferred debt must be supported by an individual contract to prevent mass sales of portfolios without documentation.
Background
Chong told the Assembly that the proposal responds to numerous citizen complaints collected across communities, including cases in which people without debts reported persistent harassment. She said the measure was developed in consultation with the Panama Banking Association to balance the rights of creditors and debtors. Chong stressed that “the project is not limited to schedules” and reiterated the law’s intent to ensure “adequate, humane and fair” collection processes.
During debate supporters emphasized that the regulation does not eliminate the right to collect debts but seeks to prevent abusive practices that can affect emotional and psychological well-being and, according to complaints, even lead to job losses when collectors visit workplaces.
What This Means
If implemented as approved, Bill No. 306 will impose clearer limits on how and when creditors and collection agencies can contact debtors and tighten oversight of transferred debt portfolios. The requirements for transparent accounting when debts are assigned aim to reduce arbitrary fee increases and to make collection activity more traceable. For consumers, the changes promise stronger privacy protections and a formal mechanism to curb harassment; for creditors and banks, the rules create compliance obligations intended to professionalize recovery practices.
The law marks a legislative response to growing complaints about debt-collection tactics in a challenging economic context, and signals a shift toward regulated, documented, and less intrusive recovery methods.