CAME finance company collapses: Is your money safe? This is what you need to know.

The National Banking and Securities Commission ( CNBV ) has intervened in the Popular Financial Company (Sofipo) CAME , suspending its operations due to financial insolvency, a measure that affects more than 1.3 million customers nationwide.

One of Mexico's largest grassroots financial institutions, the Microentrepreneur Assistance Council (CAME) , has been intervened by regulatory authorities, generating a wave of uncertainty among its 1.3 million clients, many of whom belong to the most vulnerable segments of the population and rely on these institutions for access to financial services.

The National Banking and Securities Commission (CNBV) announced the intervention with the aim of "protecting savers" after detecting critical "financial insolvency" and serious accounting irregularities at the Sofipo. Since April 1, CAME had already blocked its users from carrying out transactions through its mobile app, a first indication of the serious problems it was facing.

This collapse isn't just the story of a bankrupt company; it's a severe blow to confidence in the Sofipo sector, entities specifically designed to promote financial inclusion for people underserved by traditional banking. The fall of such a major player raises serious questions about the oversight and real stability of this model.

The most pressing question for CAME customers is: what will happen to my money? The good news is that, like all regulated Sofipos, CAME offers deposit insurance.

The government has been clear that savers' resources are protected by the Fund for the Protection of Popular Financial Societies and the Protection of Their Savers (Prosofipo). This fund guarantees the return of each saver's deposits up to 25,000 Investment Units (UDIs).

Considering the current value of the UDI, this is equivalent to protection of approximately 203,500 Mexican pesos per person. This guarantee applies regardless of the number of accounts or type of investment the client has with CAME.

"The government's intervention in CAME was carried out to ensure the protection of savers' deposits and preserve the stability of the popular savings system." – Official statement.

For a better understanding of the current situation, the key aspects are detailed below:

• Problem Identified: Critical financial insolvency has been detected, accompanied by accounting irregularities and insufficient capitalization.
• Responsible Authority: The National Banking and Securities Commission (CNBV) is the entity responsible for supervising this situation.
• Measure Adopted: The CNBV has intervened in the entity, completely suspending its operations to begin the dissolution and liquidation process.
• Savings Protection: Your savings are protected by the Deposit Insurance Fund (Prosofipo), which covers up to 25,000 UDIS per client.
• Next Steps: The CNBV and the assigned liquidator will soon announce the procedure and deadlines for savers to request payment of their insurance.

This event, although worrying, also serves as a crucial lesson in financial education. It underscores the importance of always verifying that the institution where savings are deposited is duly regulated by the CNBV and has the corresponding deposit insurance. Meanwhile, CAME's 1.3 million clients await instructions from the authorities to begin the process of recovering their savings.