Written by Camila Weinstein – Tax Associate
Beginning in April 2026, Chile will implement a landmark reform aimed at reducing information asymmetries in the credit market. The new Consolidated Debt Registry (Registro de Deuda Consolidada, or Redec) will significantly expand the number of institutions required to report credit information, creating a more complete and transparent view of individuals’ debt levels across multiple sectors of the financial system.
The reform has been nearly two decades in the making. For years, the Central Bank of Chile encouraged lawmakers to modernise the country’s credit information infrastructure. That effort culminated in June 2024 when Congress approved the law establishing Redec, closing more than a decade of legislative debate and laying the foundation for a major transformation in how debt information is collected, shared, and used.
Why Redec Was Needed
Under the current framework, banks evaluating a loan application can only access data reported by entities supervised by the Financial Market Commission (CMF), primarily banks and CMF, regulated cooperatives. This limited scope meant lenders often assessed creditworthiness using only a partial snapshot of a borrower’s true financial burden.
As such, a significant gap has persisted within this system, as many non-bank lenders do not report any debt information, including:
- Mortgage lenders
- Automotive financing companies
- Insurance companies offering credit
- Cooperatives not supervised by the CMF
- Fintech entities
- Securitisation companies
What is more, some lenders even market this opacity as a benefit, offering credit products that “don’t show up in the financial debt registry”. This incomplete view undermines accurate risk evaluation, facilitates over-indebtedness, and distorts competition between regulated and unregulated lenders.
What Redec Will Change
According to the CMF, Redec introduces two key changes:
- Incorporation of Positive Credit Information
Today’s system focuses almost exclusively on negative indicators—late payments, defaults, and delinquencies.
Redec will incorporate positive credit behaviour as well, including timely payments and responsible loan management. This offers a more balanced, comprehensive assessment of each borrower’s profile and rewards good financial conduct.
- A Major Expansion in Reporting Entities
The number of institutions required to report debt information will grow from around 40 to more than 150, including:
- Credit card issuers
- Mortgage lenders
- Insurance companies issuing credit
- Compensation funds (Cajas de Compensación)
- Fintech companies covered under the new Fintech Law No.21.521, who will begin reporting once fully registered under the new regulatory framework
- Any institution issuing credit above 100,000 UF annually or performing more than 1,000 credit transactions per year
Who Will Administer Redec?
The registry will be regulated, supervised, and operated directly by the CMF, marking a significant modernisation of Chile’s credit-reporting infrastructure.
Benefits for Consumers and the Financial Market
Experts highlight several advantages of Redec:
- Greater control for consumers
Individuals remain the owners of their credit data. They decide who can access their information and for what purpose, enhancing transparency and protection.
- Better conditions for responsible borrowers
With positive information included, strong repayment histories can translate into better interest rates, lower costs, and improved borrowing conditions.
- More personalised financial products
Access to broader and more accurate credit data will allow lenders to develop hyper-personalized credit offers, improving customer experience and supporting financial inclusion.
- Reduced risk of over-indebtedness
A consolidated view of all financial commitments allows lenders to avoid granting loans that exceed a borrower’s repayment capacity.
- Stronger financial stability
The Central Bank has emphasized that a unified debt registry strengthens risk management, improves regulatory oversight, increases competition, and facilitates consumer mobility across lenders.
A Major Step Forward
Redec represents a structural leap for Chile’s financial system. By integrating a wider range of lenders and richer credit data, it aims to deliver:
- Greater transparency
- Fairer and more equitable lending conditions
- Safer and more efficient credit markets
- Stronger protection against over-indebtedness
- Increased competitiveness across financial players
As April 2026 approaches, consumers and lenders are preparing for a more modern, data-driven credit environment, one where information gaps narrow and trust grows. Redec marks a significant milestone for borrowers, institutions, and the long-term stability of Chile’s financial market.
Harris Gomez Group METS Lawyers ® opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
As Legal and Commercial Advisors, we partner with innovative businesses in resources, technology and sustainability by providing strategy, legal and corporate services. Our goal is to see innovative businesses establish and thrive in Latin America and Australia. We are proud members of Austmine and the Australia Latin American Business Council.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create a solicitor-client relationship, and readers should seek independent legal advice for their specific circumstances. Harris Gomez Group accepts no liability for reliance on this content.