El Ciudadano
Original article: AVLA y Creditú siguen impunes tras denuncia de “usura sobre usura” encubierta a familias chilenas
While usury is illegal in many parts of the world, it remains unregulated in Chile. However, «usury on usury» may become a legal issue if the Public Prosecutor’s Office intervenes against practices in the Fintech sector that violate Chilean law, with Avla and Creditú being the most documented examples.
By El Ciudadano Investigative Team
More than a year after the initial reports of alleged concealed usury in credit issuance emerged, AVLA and its associated fintech Creditú continue to operate within Chile’s financial system without any visible criminal sanctions, as the Public Prosecutor’s Office is still assessing the significance of the case.
The original report published by El Ciudadano revealed a model that, according to complaints from affected parties, has allowed the actual cost of loans to exceed legal limits through parallel charges—such as «operational expenses» or insurance—that are not transparently disclosed as interest. Over time, new judicial evidence and testimonies have strengthened the argument for a structured scheme designed to circumvent the Maximum Conventional Rate.
In Chile, the Maximum Conventional Rate (MCR) is governed by Law No. 18.010 regarding money credit operations, representing the maximum interest rate legally permissible on a loan. This rate is periodically determined and published by the Commission for the Financial Market (CMF) and varies depending on the type of transaction, amount, and duration of the loan. The MCR is calculated using average market rates, plus a legally permitted margin, aimed at protecting consumers from excessive or usurious charges. Any interest exceeding this limit is deemed illegal, leading to potential reductions to the maximum allowable rate, restitution of overpaid amounts, and even criminal liability in cases of usury.
If a fintech imposes charges for insurance or other instruments that effectively raise the total cost of credit above the Maximum Conventional Rate, «it is not ‘innovating’ financially; it is pushing against or violating the law,» says a payment systems programmer familiar with the sector, in an interview with El Ciudadano.
Legally, these charges can be reclassified as concealed interest if they are mandatory, excessive, or do not correspond to actual services, implying that the credit exceeds the legally permitted limit. In such a scenario, the behavior may constitute usury (or at the very least, an attempt to evade interest regulations), with consequences ranging from nullifying clauses, recalculating debt, restitution of undue charges, and in serious cases, potential criminal responsibility.
A Repeated Pattern: Retentions and Hidden Overcharges
Subsequent investigations have delved deeper into the workings of this mechanism. According to new complaints, the model would involve withholding a significant portion of the credit at the time of signing under the guise of «operational expenses», thus reducing the effective amount received by the customer while maintaining the obligation to pay on the total agreed upon.
A cited case in judicial investigations is related to the complaint filed by Jorge Zacarías Flores, which reveals that out of a credit close to 24,000 UF, the company allegedly withheld over 3,500 UF for this concept, which—according to the complaining lawyer Winfried Hempel—would constitute an indirect way of charging interest above the legal limit. As reported by Interferencia, similar practices recur across various complaints that are currently part of the Public Prosecutor’s investigation.
Moreover, according to Interferencia, this mechanism is not an isolated case but part of a financial structure involving both AVLA and Creditú, enabling the «concealment of illegal interests» through ancillary charges designed to evade current regulations.
In a statement to El Ciudadano, a former judge wishing to remain anonymous indicates, «Based on the evidence presented to me, there have been reports of credit operations in which, under the guise of ‘operational expenses’, insurance, and other ancillary charges, the real cost of financing has been increased beyond the limits established by Law No. 18.010; considering that, according to the principle of primacy of economic reality, the true nature of the charges must be taken into account beyond their contractual denomination, this judge believes that when such charges constitute necessary conditions for granting credit and do not correspond to real, proportional, and duly accredited services, they must be classified as interest for legal purposes.
In this sense, if it is verified that the amount effectively delivered to the debtor is less than the capital on which payments are calculated, due to withholdings or initial charges, and that on said nominal capital interest and payment obligations are applied, this constitutes an increase in the total financial cost that may imply exceeding the Maximum Conventional Rate. Additionally, the imposition of insurance or other associated products, especially when linked to related entities or presenting disproportionate values, constitutes further evidence of structuring aimed at evading mandatory interest regulations.
For these reasons, and if the facts are substantiated, it is concluded that the described mechanism is contrary to Chilean legislation on money credit operations, as it constitutes a form of concealed interest exceeding legal limits. Consequently, it would correspond to declare the nullity of abusive clauses, order the recalculation of obligations according to the law, with restitution of improperly received amounts, without prejudice to any civil and criminal liabilities that may arise,” stated the lawyer and former judge, anticipating a ruling that may require several million pesos to be refunded to those affected, possibly leading to a…
Testimonials: Debts That Multiply
The complaints not only target technical aspects of credit but also the concrete consequences for clients. Various testimonies collected in court cases describe how initial debts have reportedly tripled over time.
These situations have given rise to complaints of fraud, usury, and repeated misappropriation, creating a complex judicial scenario that has lingered since at least 2019 and remains unresolved to this day.
One of the most significant elements in the evolution of the case is the Public Prosecutor’s progress toward the eventual indictment of company representatives. As reported by Interferencia, the Public Prosecutor’s Office is prepared to formally charge the legal representative of AVLA with fraud, marking a turning point in the investigation.
Another key aspect that has emerged strongly in the complaints is the use of insurance and policies as mechanisms to increase the cost of credit. Testimonies collected in the investigations indicate that these instruments effectively function as concealed commissions.
Consulted by El Ciudadano, lawyer Roberto Vergara exemplifies the mechanism: «Imagine applying for a mortgage loan and the bank tells you the interest rate is 6.4% per year – just below the legal limit, which at that time was 6.45%. All seems fine.
But upon receiving the money, you discover that a significant portion of the total ‘loaned’ amount never reached you. That money went directly to pay invoices issued by companies related to the same lender: one for ‘credit study expenses’ and another for ‘insurance mediation commission.’ Amounts that in the cases we are investigating exceed a hundred million pesos per operation.
The problem is twofold. First, Chilean law explicitly states which expenses a mortgage lender may charge the debtor, and those concepts are not included in the list. Second, when we add these charges to the declared interest, the actual rate paid by the debtor exceeds double the legal limit—in some cases reaching 14% annually when the maximum conventional was 6.45%.
Why does the scheme work? Because on paper the interest rate appears legal. What is concealed is that a significant part of the ‘loaned’ money never reached the client: it was diverted to companies in the same group through invoices for services that, according to the investigation, may not have been actually provided. In other words, the client pays interest on money never received and also finances unauthorized charges with that same money,” he explains.
Additionally, the lawyer notes that «the Commission for the Financial Market already sanctioned this same company in 2022 for charging rates exceeding the legal limit. What the criminal investigation now seeks to establish is whether the subsequent modality—disguising those charges as operational expenses—constitutes aggravated usury, which is precisely when it is simulated that a legal rate is being charged.»
Among the numerous complaints against AVLA and its executives, significant allegations include: the crime of “usury as provided and sanctioned by article 472 inc.1 of the Criminal Code, residual fraud as provided and sanctioned in article 473 of the Criminal Code, repeated misappropriation as provided and sanctioned by article 470 of the Criminal Code, unlawful association as provided and sanctioned by article 292 of the Criminal Code, and money laundering as provided and sanctioned by article 27 of Law 19.131,” details the document from one of the plaintiff’s lawyers, Winfried Hempel.
As reported by El Mostrador, «Creditú loans are not offered with its own resources but rather use funds from contributors of various investment funds, including Fynsa, Volcom, BICE Vida, Sartor, and Consorcio, among others. The Inter-American Development Bank also contributes funds.»
What is AVLA? Ownership, Networks, and Links
AVLA is a Chilean financial group focused on guarantees and credit solutions, with a presence in various Latin American markets. In recent years, it has expanded its operations to more complex financial products, including platforms like Creditú.
Key figures in its structure include Diego Fleischmann Chadwick and Matías Fleischmann Chadwick, deemed essential to the development of AVLA and Creditú. Both are children of María Carolina Chadwick Piñera, cousin of former president Sebastián Piñera, and nephews of former minister Andrés Chadwick, a prominent political figure linked to the so-called «Hermosilla Case.»
These family ties have drawn public scrutiny, not only due to their proximity to political power circles but also in the context of ongoing investigations into the alleged credit practices.
The AVLA–Creditú case has reignited debate over the gray areas of the Chilean financial system. Although interest rates may formally comply with regulations, the structure of parallel charges appears to alter the actual cost of credit without explicitly violating the law in form, but rather in substance.
This situation has raised questions about the effectiveness of supervision and enforcement within the system, as well as the current legislation’s ability to protect consumers against complex financial schemes.
Despite the accumulation of complaints, testimonies, and investigative progress—including the imminent formalization of executives—the companies continue to operate without visible sanctions, while hundreds of families are still facing legal proceedings, seizures, or escalating debts.
Far from concluding, the case has solidified as one of the most significant examples of alleged structured usury on usury in Chile, where the sophistication of financial instruments seems to stay one step ahead of regulation and justice.
By El Ciudadano Investigative Team
La entrada AVLA and Creditú Remain Unpunished Amid Allegations of ‘Usury on Usury’ Targeting Chilean Families se publicó primero en El Ciudadano.
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