The market for financial products has always been attractive to those who want to be part of©it and enjoy its monetary benefits. Usually, people think that lenders will help them generate a lot of extra income, but there is enough to consider first. On September 1, 2018, a group of Colombians were arrested in Argentina and, according to local police, this was the first time a case of these features had been discovered in Bueno Aires. The detainees, two Colombian citizens and an Argentinian, were arrested in the last hours by members of the municipal police in two trials. They had more than 100,000 Argentine pesos in cash under their belongings. The lender, claiming to have 15 years of experience in the business, calls the person in a chain store so that the “user” buys a device, keeps the purchased and reduces ten percent of the value of the item. The authorities point out that these products are then sold in commercial premises in the city, while the user had to pay ten percent of the amount purchased to the lender and must also pay the legal interest on his credit card. HOW TO SPOT A SCAM Here are seven ways to identify scams, according to the Financer.com:1 blog. Search for information in comparators: Fake online lenders are not advertised in comparators.2. Check if the web is secure: the URL must start with HTTPS, without the “S” it is not a reliable site.
Also, you should see a padlock indicating that this is a website that has the Secure Socket Layer (SSL) certificate.3. Read other users` comments on social media and forums: look for information about the company, ask for opinions, and study what`s behind it. (Read also: What the European Investment Bank will finance in Colombia).4. When an advance is requested, it is fraud: if a company requires an initial payment for a loan, it is a clear indication of fraud.5. Do not accept loans from people: no one gives the money. Peer-to-peer lending should be supervised by regulatory companies or crowdlending platforms that guarantee reliability.6. Check the Legal Notice and Terms and Conditions pages of the website: check that the portals are up to date and comply with applicable laws.7. When in doubt, ask organizations such as the Financial Supervisory Authority: This type of organization reports on the legality of companies. In addition, it is recommended not to provide private information or personal data such as email or telephone.
(Read also: Nequi`s new `life` begins: these are his goals) The best way to avoid online fraud is to be well-informed and always vigilant. Unfortunately, these types of fraud are commonplace. PORTFOLIO But this kind of wear and tear is accompanied ± by violence and threats against those who cannot afford the loan©. According to the Colombian Penal Code, charging this type of interest and offering such expensive loans is illegal and criminal. It aims to increase the penalty by up to two times more if minors are affected by violent acts committed by lenders. Prosecuting the usurer is not easy, according to researchers; In many cases, they are brought before judges for related offences such as fraud, deportation, death threats, homicide and assault. Currently, the law provides for penalties of up to 10 years in prison and fines of up to 600 statutory monthly minimum wages. Similarly, the authorities have found that one of the most common hooks used by illegal lenders is to offer loans to persons registered in risk centres.
“Citizens do not know the rules of declaration in factories and the possibility of restoring their repayment period,” they said. The researchers point out that one of the difficulties in suing lenders is that they don`t even start businesses and all of their customers know they`re not legally compliant. In addition, the interest they charge is illegal. These are some of the forms of credit that are abundant in the informal credit market. In most cases, they charge interest of 20% per month, while the legal rate in Colombia is 2.46%. Dark and illegal features and connotations, and the depressing consequences of using a drop-by-drop loan, we need to understand why this business model is so popular on the echelons most underserved by traditional banking: it knows what problem it solves and what its solution is, tailoring its product to the needs of its target market. It offers reasonable (small) amounts to mitigate risk, instant availability of money, in-home service, validation and verification of immediate customers, no documentation required other than ID and utility bill, and has a powerful administration and collection system. In addition to paying very high interest rates to lenders and running the risk of being burdened “the hard way”, those who opt for this type of loan risk falling into the hands of networks dedicated to fraud. Just last year, Superfinanciera reported to prosecutors the cases of 32 companies posing as law firms overseen by the company, offering nimble loans and other financial products. This aggravating circumstance would increase the penalties imposed on lenders to 15 years` imprisonment and a fine of up to 1,500 at the statutory minimum wage.
Pyramids, for example, are considered illegal recruitment. Those who promote, implement or participate in these schemes may be fined and assets confiscated.