Fraudulent credit due to malicious advertising, fake Internet pages and newspaper ads is a problem that has hit Mexicans.
In fact, the Secretariat for the Security of Citizens of Mexico City reported that it had received up to last August 15,000 complaints against financial requests known as “montadeudas”, which through social networks offered attractive credits without requirements to subsequently request payment of the debt through intimidation or extortion of debtors, as well as excessive interest charges.
According to the Financial Inclusion Survey (ENIF) 2021, around 15% of the Mexican population reported experiencing problems such as identity theft, card cloning or investing in fraudulent financial products such as pyramid schemes or being the victim of a scam.
And while formal credit penetration increased 29% in 2015 and 33% in 2021, the truth is that informal credit has spread to the population of rural locations. Among the various types of informal financing, the loan granted by relatives (22%) is the most used, followed by loans from friends and acquaintances (13%).
“The economic ‘cost’ caused by COVID-19 and the high rates of inflation that have been achieved in Mexico have helped to reduce the level of financial well-being of the population, which means that it limits their consumption, decreases their savings and, It even generated debts that forced it to look for some type of credit or loan, which in some cases and unfortunately can be fraudulent ”, comments Aroldo Dovalina, CEO of Paynom.
He points out that in the face of bad experiences caused by alleged “financial” companies, it is necessary to be vigilant and avoid any express loan that requires an advance as a condition for the delivery of the requested money.
“At the family level, economic well-being must be sought and it must be clear that credit must not be a recurring outlet for dealing with economic emergencies. Let’s remember that the good use of credit will be reflected in our credit history and will benefit us when we ask for a mortgage, for example, ”says the CEO.
Find out more: Digital payments are gaining more and more ground
5 tips to avoid fraudulent credit
Aroldo Dovalina shares some recommendations that will help avoid fraudulent credits:
1. Money in advance. Do not trust if the financial institution requests or requires advances of money in cash or by deposit on a bank account to set aside the credit, manage it, advance monthly payments, pay opening costs or as a surety, generally for the equivalent of 10% of the total amount of credit requested.
2. Read the terms and conditions carefully. The borrower (who requests the credit) is obliged to repay the available amount and cover it promptly and, in any case, to pay the interest, benefits, expenses and commissions that are indicated to him. As in marriage, before saying yes, it is important to read and understand the terms and conditions established by financial institutions for granting credit. Don’t be fooled by the apparent speed with which credit is granted.
3. Do not hand over original documents and review the contract before signing it. Original official documents such as the credential of the National Electoral Institute (INE), passport or bank cards must never be delivered. And before signing a contract it is important to understand the financial terms, for example, the interest rates waves commissions pay, as well as compare the total annual cost (CAT). Once the contract has been signed, a copy of it must be requested. If you have any questions, it is important to seek the advice of a lawyer.
4. Check the Registration system for financial service providers of the National Commission for the Protection and Defense of Users of Financial Services (CONDUDED). This digital service allows you to verify that the financial institution is registered. On the page of Financial fraud CONDUSEF can check if the financial institution has any complaints. In addition, if the company name contains the words SA de CV, its existence can be verified with the Federal Consumer Protection Agency (PROFECO).
5. Consider various alternatives such as the payroll advance. In Mexico, platforms for payroll or wage advances have emerged on request that allow workers to access a percentage of their salary to solve economic emergencies, 24 hours a day, 7 days a week and from the comfort of their mobile phone or computer. This way, employees who have access to their own money can save the resources they set aside to pay commissions and interest charged on personal credits and loans.
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