The La Serena Court of Appeals has ruled that a protection writ filed by a debtor of the State-Guaranteed Loan (CAE) is inadmissible. The lawsuit sought to prevent asset seizures being carried out by the General Treasury of the Republic (TGR).
The plaintiff, who owes approximately 20 million pesos, argued that applying Tax Code procedures to collect educational debt is illegal.
The court ruled the action inadmissible, arguing that alternative legal avenues and administrative processes exist within the TGR itself to resolve the dispute.
Defense Arguments
On April 10, the defendant's legal team filed a motion for reconsideration to overturn the decision. The attorney argued that the existence of other legal remedies is not a valid legal ground for declaring a protection writ inadmissible at its initial stage.
The motion emphasizes that applying tax regulations strips debtors of most of their legal defenses. According to the lawyer, the procedure reduces the number of legal exceptions from 18 to just three.
"Telling the plaintiff to 'defend' herself before the TGR with only three exceptions is precisely what validates the constitutional violation being denounced," the defense document stated.
The defense also questioned the impartiality of the administrative process, noting that the Provincial Treasurer acts as both judge and representative of the creditor simultaneously.
Elsewhere in the country, law firms such as HAZ Abogados have labeled TGR-led seizures as illegal. The firm maintains that the CAE is neither a tax nor a tax debt, but rather a credit regulated by Law No. 20,027.
"The TGR is essentially acting as a 'super-collector' without express legal authorization," representatives from HAZ Abogados stated.
Similarly, the law firm Derecho Fácil confirmed it has also filed protection writs against the institution, aiming to halt what they describe as abusive collection practices.
If other courts rule similar challenges as admissible, the Supreme Court will be required to intervene to unify legal precedent regarding the legality of the collection procedures applied by the Treasury.