Colombia · FINANCE
Key Facts
- —Court Colombia’s Consejo de Estado annulled six articles of Decreto 2669 de 2012 on 4 June 2026.
- —Articles The annulled articles are 2, 3, 4, 5, 12 and 13.
- —Ground The court found the Executive exceeded its regulatory power under Ley 1231 de 2008.
- —Survives Articles 1, 6, 8, 9, 10, 11 and 14 of the decree remain in force.
- —Effect Factoring by unsupervised commercial companies now falls back on the law and general commercial rules.
Colombia’s top administrative court has struck down six articles of a 2012 decree that regulated factoring, saying the government overstepped its authority.
Colombia factoring decree has lost six articles after the Consejo de Estado. The country’s highest administrative court, annulled them for exceeding the government’s regulatory authority.
The ruling, dated 4 June 2026, struck down articles 2, 3, 4, 5. 12 and 13 of Decreto 2669 de 2012, which regulated the factoring business of commercial companies.
What the Court Annulled
However, the Consejo de Estado, sitting as its Sección Primera, annulled six articles of the decree. The judgment, dated 4 June 2026, became public news in August 2026, according to Valora Analitik and La República.
The annulled articles include article 2, which defined factoring and related operations, and article 3, which allowed parties to insure against non-payment. Article 4 let parties agree freely on discount rates for past-due instruments, and article 5 governed assignment clauses.
Article 12 limited how factors could fund themselves, and article 13 listed prohibited operations. Therefore, articles 1, 6, 8, 9, 10, 11 and 14 remain in force.
Why the Court Struck Them Down
The ground for annulment was exceso en la potestad reglamentaria, meaning the Executive exceeded its regulatory power. The court concluded that the government went beyond what Ley 1231 de 2008 allowed.
Ley 1231 de 2008 turned commercial invoices into negotiable instruments to help small businesses access financing. The court said the law did not authorize the government to issue a comprehensive regulation of factoring as an economic activity.
For example, the court listed narrow areas the law allowed the Executive to regulate, such as verifying origins. In addition, the annulled articles went further, adding definitions and restrictions.
What Is Factoring
Factoring is short-term finance where a supplier sells unpaid invoices to a third party at a discount. This gives the supplier cash immediately instead of waiting for the customer to pay.
In Colombia, factoring is also called compra de cartera, literally the purchase of a receivables book. In fact, it comes in two forms: sin recurso and con recurso, with different responsibilities.
The decree applied only to factoring companies set up as ordinary commercial companies, not supervised by the financial or solidarity regulators. The Superintendencia de Sociedades oversees these companies and maintains a register of factors.
The Decree’s Background
Decreto 2669 de 2012 was issued on 21 December 2012 by the Ministry of Commerce, Industry and Tourism. It took effect six months later, on 21 June 2013.
The decree’s stated purpose was to ease invoice circulation and help factoring grow for SMEs. The court’s ruling did not change that purpose, but it removed the detailed regulatory frame.
The six annulled articles had also been incorporated into Colombia’s consolidated commerce regulation, Decreto Único Reglamentario 1074 de 2015. They are now flagged as void in the official Normograma compilation.
What Survives the Ruling
Still, the rest of the decree stands, including article 8, which created the Registro Único Nacional de Factores. Article 9, which imposes anti-money-laundering duties on factors, also remains in force.
Despite this, the court did not annul article 6 on assignments or article 10 on corporate governance. Article 7 had already been repealed in 2014 and was not part of this ruling.
Anti-money-laundering duties survive because they rest on the statute rather than on the annulled articles. Factors’ directors remain responsible for compliance with article 8 of Ley 1231 de 2008.
The Court’s Reasoning
Even so, the court held that the Executive exceeded its regulatory power by setting essential rules. Meanwhile, the press note said the government could not issue a comprehensive regulation of this activity.
Moreover, the court explained that decrees may develop laws but cannot create new regulations for Congress. The annulled articles incorporated definitions, contract rules and restrictions that went beyond the law.
The plaintiff’s argument was that Ley 1231 de 2008 only sought to unify the invoice and give anti-money-laundering tools. It did not delegate the power to set the substantive regime for factoring.
Practical Effect on Factoring
As a result, factoring by these unsupervised companies falls back on Ley 1231 de 2008 and ordinary commercial law. This means freedom of contract will govern many aspects of factoring deals.
In short, the ruling eliminates a regulatory framework that exceeded the law, according to Póngase al Día. Firms should review their contract templates and compliance procedures.
Overall, factoring companies will operate with more flexibility but must still comply with surviving articles. The court did not examine other grounds raised in the suit, as it found the excess of regulatory power proven.
Background on the Consejo de Estado
The Consejo de Estado is Colombia’s highest administrative court, separate from the Constitutional Court. Its Sección Primera handles cases seeking to void government decrees for exceeding legal authority.
The court’s role is to ensure that regulations stay within the limits set by Congress. This ruling is an example of that oversight, as it struck down parts of a decree that went beyond the law.
The judgment is dated 4 June 2026, and the news was reported in August 2026 by Valora Analitik and La República. The court’s own press note was reproduced by El Correo.
What This Means for Colombia Factoring Decree
The Colombia factoring decree has been partially annulled, but the core regulatory framework for factoring companies remains. The annulment affects only six articles, not the entire decree.
Factoring companies are still supervised by the Superintendencia de Sociedades, and the register of factors remains in place. The ruling clarifies the limits of executive power in regulating this financial activity.
In short, the court has reaffirmed that the government cannot expand a law beyond its original scope. The Colombia factoring decree now stands with fewer rules, but the legal basis for factoring remains intact.
Frequently Asked Questions
What did the Consejo de Estado annul?
The court annulled six articles of Decreto 2669 de 2012: articles 2, 3, 4, 5, 12 and 13. These covered definitions, contract rules, funding sources and prohibited operations.
Why were the articles annulled?
The court found that the Executive exceeded its regulatory power, known as exceso en la potestad reglamentaria. The government added rules not authorized by Ley 1231 de 2008.
Does the ruling affect all of the decree?
No, only six articles were annulled. Articles 1, 6, 8, 9, 10, 11 and 14 remain in force, including the register of factors and anti-money-laundering duties.
What happens to factoring companies now?
Factoring by these commercial companies falls back on Ley 1231 de 2008 and ordinary commercial law. They are still supervised by the Superintendencia de Sociedades and must comply with anti-money-laundering rules.
Connected Coverage
Sources: Consejo de Estado press note; Valora Analitik; La República; El Correo; Póngase al Día; Régimen Legal de Bogotá, Secretaría Jurídica Distrital; Secretaría del Senado; official Normograma compilation.
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