Wanganui

Main Menu

  • Creative Destruction
  • Tax Haven
  • Terminal Value
  • First Theorem Of Welfare Economics
  • Debt

Wanganui

Header Banner

Wanganui

  • Creative Destruction
  • Tax Haven
  • Terminal Value
  • First Theorem Of Welfare Economics
  • Debt
Debt
Home›Debt›In Colombia, the usurious loan is now just a click away

In Colombia, the usurious loan is now just a click away

By Judy Grier
March 9, 2021
0
0

Colombia’s long-standing usurious loan tactic known as “gota a gota” has entered the digital age, as Mafias now use mobile apps to hide money transfers, bill customers and threaten those. who cannot pay.

The ‘gota a gota’ or ‘drip’ tactic – named for the way victims are slowly drained of their funds – involves lending small amounts of money to high interest rates people who have difficulty obtaining traditional loans. Money often comes from illegal activities, including drug trafficking.

SEE ALSO: Colombia News and Profiles

In the past, criminal groups used storefronts to find customers and physical cards to track debts. But police say criminal groups have abandoned this archaic method in favor of mobile apps that make it much easier to reach and interact with their vulnerable customers, El Heraldo reported.

The authorities have long combated traditional “gota a gota” operations, and the digitization of this extortion method complicates this task by giving debt collectors a new, easy way to access, bill and track their victims.

The apps record payment dates, new payments, interest, loan status, and other details. In some cases, applications even have access to debtor profiles and locations. Providing such information puts debtors in a dangerous situation as they are often threatened, robbed, attacked or even killed when they cannot pay.

Meanwhile, authorities have struggled to curb the practice of “gota a gota”, as victims are often afraid to speak out.

InSight Crime Analysis

The ease of use of the new mobile phone applications will provide new customers to the mafias in the “gota a gota” loan sharking industry, which has proved particularly lucrative for criminal groups looking for ways to diversify their sources of income and. to launder money.

While “gota a gota” began in Colombia, he has since migrated to a number of countries in the region – Mexico, Peru and Chile. Same Costa Rica, which has managed to avoid some of the evils of its Central American neighbors, has seen these loans take off due to an influx of money from drug trafficking.

In addition, cell phone technology has developed considerably extortion rackets throughout Latin America. A cheap phone and a few dollars in prepaid credit are the rudimentary tools to get into the game.

SEE ALSO: Extensive extortion coverage

The “gota a gota” method, however, usually requires the backing mafias, who have the capital to engage in the loan sharking business and the ability to follow the money. And the apps are easy to find.

A search of app stores by InSight Crime found several of these apps available for free, some of which directly referenced “I have loans” in their names.

What makes using these apps alarming is the amount of information customers have to provide, including detailed personal information. It just makes it easier for debt collectors to threaten victims. Why send armed thugs to debtors’ doorsteps when a simple WhatsApp message – with their exact location or that of their loved ones – will suffice?

Was this content helpful to you?

We want to maintain the largest organized crime database in Latin America, but to do so we need resources.

MAKE A DONATION

What are your thoughts? Click here to send your comments to InSight Crime.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the signature and links to the original at the top and bottom of the article. Check the Creative Commons website for details on how to share our work, and please email us if you are using an article.

Related posts:

  1. Why JPMorgan Chase should donate $ 1 billion to Chicago’s black neighborhoods
  2. 64% of companies requesting PPP funds got money
  3. Disaster activist continues to help small businesses
  4. LendingClub agrees to acquire Radius Bancorp

Recent Posts

  • XPeng Stock: Anchored in Valuation, Not Speculation (NYSE: XPEV)
  • Balenciaga’s trashed sneakers divide opinion and tap into fashion history
  • US States Struggle to Replace Tax Revenue from Fossil Fuels | News, Sports, Jobs
  • MarketInk: Newsradio KOGO Wins Regional Edward R. Murrow Award
  • Scarlet Witch Fills Out The Original MCU Hulk Arc

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • July 2019
  • June 2019
  • April 2019
  • February 2019
  • January 2019
  • September 2018
  • December 2017
  • October 2017
  • March 2017
  • February 2017
  • December 2016
  • August 2016
  • May 2016
  • April 2016
  • October 2015
  • May 2015
  • April 2015
  • November 2014
  • September 2013
  • August 2010

Categories

  • Creative Destruction
  • Debt
  • First Theorem Of Welfare Economics
  • Tax Haven
  • Terminal Value
  • Terms and Conditions
  • Privacy Policy