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How to recognize a fraud of an app that lends money?

There is a new pandemic, but this is financial: Internet loans, apps and scams.

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur contributors are their own.

They will say that it is clickbait but it is real: Currently there is a type of credit (called liquidity), offered by the internet and applications downloaded to the cell phone that is generally for small unforeseen events . They are very low amounts and of a very short duration. That is, they lend it to you almost immediately with very few requirements to pay in a month or less. Unfortunately the number of people over-indebted for this type of loan is increasing exponentially and you should know that there are several risks in this regard in case your plan is to venture to request one.

First of all, you should know that there are two types of these financials: those regulated by the CONDUSEF and the unregulated ones, in addition to other options that neither companies are, but fraudsters with false credit promises.

I explain the difference to you.

We lend online and from financial apps registered with the CONDUSEF

These are authorized, regulated and supervised by the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) and have the advantage of being obliged to comply with a series of provisions on financial transparency so that contracts , account statements and operating receipts are clear, specific and do not contain abusive clauses, as well as their advertising does not mislead.

It is important to point out that when acquiring a loan with these financial institutions, the CONDUSEF can attend to any claim for improper collection or abusive collection towards users.

Online loans and apps not registered with the CONDUSEF

These lenders or "financiers" are not regulated or supervised by any authority that can respond to any abuse towards their users and lately they abound.

The conditions of these loans are generally abusive, with normal interest rates and a default rate well above the market average. Many times they are branches of the same company.

The applications when installed on the cell phone ask for excessive permissions such as access to the agenda, location, gallery and other functions of the cell phone, which can become a real nightmare for the user in case of falling into default, since the collection used by these platforms is a real horror. The most common is that they send WhatsApp messages to the entire debtor's agenda with messages informing about the debt in the best of cases, or slandering that the person is a fraudster, threats of embargo and / or even openly insulting and degrading messages , trying in this way to pressure the debtor to pay as soon as possible under social pressure and shame with the social circle they cause.

And all this for micro debts of 500, 1000 or 2000 pesos, which makes it unaffordable to give legal follow-up before a competent authority since the cost in time and money could easily exceed the cost of the debt itself, making it more convenient only to pay it for stop this collection terrorism.

Online ghost finance scams

Generally, people going through a financial emergency are more likely to fall for this type of fraud.

They offer high credits with minimum requirements, and they invariably ask you for money for any reason before giving you credit, insurance, administrative expenses or any other excuse, if this happens it is a red flag. No serious credit institution will ask you to deposit anything before granting you a loan and worse, to the point that they usually ask you for money when you have already delivered personal documentation, which can also be used for extortion or identity theft.

Given this situation, I leave you some tips before taking any of these credits and so that you avoid falling into fraud.

Signs of legitimate loans

  • They have a good reputation on the internet: Google the name of the institution. If it does not have a web presence, nor do you mess with it, and if it does, analyze its reputation, what other users think and how long they have been working.
  • They offer sums of money according to your ability to pay
  • They don't offer to "get you off the credit bureau" (that's impossible).
  • They do not ask for keys or passwords at any time

Remember that, if it is absolutely necessary to take this type of credit online, always prefer companies that are included in the Registry of Financial Service Providers (SIPRES), on their page you can consult it for free , you just have to have the name of the financial company or you can call CONDUSEF directly and ask directly for the financial institution of your interest at 800 999 80 80.