Fraudulent credit through malicious advertising, bogus internet pages and newspaper ads is a problem that has affected Mexicans.
In fact, the Secretariat of Citizen Security of Mexico City reported that until last August it received 15,000 complaints against financial applications known as “montadeudas”, which through social networks offered attractive credits and without requirements to later require the payment of the debt. debt through the intimidation or extortion of debtors, as well as the charging of excessive interest.
According to the 2021 Financial Inclusion Survey (ENIF), around 15% of the Mexican population reported having suffered problems such as identity theft, card cloning or having invested in fraudulent financial products such as pyramid schemes or having been the victim of a fraud.
And although the penetration of formal credit increased by 29% in 2015 and 33% in 2021, the truth is that informal credit has spread to the population of rural localities. Among the various types of informal financing, the loan given 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 percentages of inflation that have been reached in Mexico have contributed to the population reducing its level of financial well-being, which means that it limits its consumption, decreases its savings and, It has even generated debts that have forced it to seek some type of credit or loan, which in some cases and unfortunately can be fraudulent”, comments Aroldo Dovalina, CEO of Paynom.
He emphasizes that in the face of bad experiences caused by supposed “financial” companies, it is necessary to be alert and avoid any express loan that requires an advance as a condition to deliver the requested money.
“At the family level, financial well-being must be sought and it must be clear that credit should not be a recurrent outlet to face economic emergencies. Let us remember that the good use of credit will be reflected in our credit history and will benefit us when we request, for example, a mortgage loan”, says the CEO.
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5 tips to escape 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 means of a deposit to a bank account in order to set aside the credit, manage it, advance monthly payments, pay opening expenses or as a guarantee bond, generally for the equivalent of 10% of the total amount of the requested credit.
2. Read carefully the terms and conditions. The borrower (who requests the credit) is obliged to return the amount available and cover it in a timely manner and, in any case, pay interest, benefits, expenses and commissions that are indicated. As in marriage, before saying yes, it is important to read and understand the terms and conditions established by financial institutions to grant credit. Do not be fooled by the apparent speed with which credit is granted.
3. Do not deliver original documents and review the contract before signing it. Original official documents such as the credential of the National Electoral Institute (INE), the passport or bank cards should never be delivered. And before signing a contract it is important to understand the financial terms, for example, the interest rates waves commissions to pay, as well as compare the Total Annual Cost (CAT). Once the contract is signed, a copy of it must be required. If you have any questions, it is important to seek the advice of a lawyer.
4. Consult the Financial Services Providers Registration System of the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF). This digital service allows you to verify that the financial institution is registered. On the page of Financial Fraud CONDUSEF can verify if the financial institution has any complaint. In addition, if the name of the company contains the words SA de CV, its existence can be verified in the Federal Consumer Protection Agency (PROFECO).
5. Evaluate different alternatives such as payroll advance. In Mexico, payroll or salary advance platforms have emerged on-demand that allow workers to access a percentage of their salary to solve economic emergencies, 24/7 and from the comfort of their cell phone or computer. In this way, employees with access to their own money can save the resources they allocate to paying commissions and interest charged by credits and personal loans.