Beware of “Montadeudas”: The Danger of Unregulated Small Loans

Written in ECONOMY he 25/5/2023 · 02:00 hs

In recent years, small loans have become popular, ranging from 500 to 10 or 20 thousand pesos, which promise to be delivered immediately and with almost no requirement. Although there are regulated companies, there are others that are not and that They take advantage of people’s needs these are known as “montadeudas”.

In general, the “microcredits” They are focused on the population that does not have access to bank financial products.

According to the co-founder of Baubapa financial application with more than 400,000 borrowers, these business models use technologies to “better assess the ability and willingness to pay” and thus provide financing to those who are considered “very high risk”.

What are debt mounters?

As we have told you in other notesThese are people or organizations that misuse the data of the people who grant access from their cell phone when requesting a loan.

Time after, “they ask for much higher charges than agreed” through threats and extortionaccording to Baubap.

9 redflags to detect them

1. Unknown and unregulated companies: If there is no information about it on the internet, it is best to avoid it.
2. They request money in advance: a trustworthy company is able to assess risk without this requirement.
3. They ask for your deposit account information before approving the credit: formal organizations dedicated to this do not request this requirement.
4. They have generic and free contact emails, as well as being similar to each other. It is also suggested to check their addresses; If the electronic addresses do not have an official domain, it is advisable to avoid them.
5. The app has inflated numbers and reviews; that is, they will be able to show a large number of downloads, but not opinions.
6. There are no opinions about the application of your interest or there are many negatives
7. The app has bad practices such as asking you to qualify it before providing the service.
8. Strange and careless descriptions; many are foreigners and use translators, so spelling and writing mistakes are another indicator.
9. They usurp the identity of a formal company

There are even companies like Baubap that have help pages or to raise a report in case the montadeudas want to charge you or threaten you by pretending to be them or any other app.