“Drop by drop” loans: Lima, Piura and La Libertad are the most affected regions

2023-09-27 18:50:27

In the middle of the year, the Peruvian Institute of Economics (IPE) reported that more than half a million families had accessed “drop by drop” loans, informal high-interest credits with collection methods that can involve abuse.

After a few months, the National Police warns that so far this year Lima, La Libertad and Piura These are the main regions where the greatest number of “drop by drop” loan extortions are concentrated.

“They are concentrated more in La Libertad, Piura and Lima, they are the three main departments where there are the most rates. So far we have registered 409 complaints for this modality,” said Colonel Jorge Carpio Ordaya, head of the kidnapping and extortion investigation division. of the national police.

Carpio added that this type of criminal modality is already found throughout the country, both virtually, through applications, and physically with the personal delivery of the loan.

Only in the last year it is estimated that they would have been issued informal loans for at least S/ 1 billion in Peru and it is noted that 35%, or close to four out of every 10, of those who accessed a loan received a threat or pressure.

In many cases these people opt for these informal loans rather than those from regulated financial entities because in many cases they do not meet the requirements requested by banks to provide loans, faced with a higher interest rate.

“They are 500% more expensive than the credits of the Finance systemwhich have a regulation that sets a rate ceiling,” said Miguel Vargas Ascenzo, general manager of the Association of Banks.

The debts generated in this form of informal credit, with which different methods of attracting victims have been developed, generally end in extortion.

In Peru alone, the crime of extortion generates profits of US$530 million annually for criminal groups, according to a study of illegal economies by CHS Alternativo.

In addition, it is estimated that at least 250 thousand formal companies, mainly mypes, suffer from extortion and must pay an average of S/ 200 per month in quotas alone.