The “drop by drop” loan applications They continue doing their thing in Mexico. Although Google updated the rules in the Play Store To prevent approval, some maintain their presence in the store. In other cases, the apps changed their name, but maintained their company name and modus operandi.
In accordance with Rest of the World, Thousands of Mexicans continue to suffer from the problem of loan applications on Android. Also called debt montagers, these apps They promise immediate money without the need to have a credit history.
The loans are accompanied by Stratospheric interests and deadlines impossible to meet. When a person misses a payment, the debt grows until it becomes unsustainable. This is where the harassment and threats to the user and their contacts, who receive intimidating messages to force them to pay.
According to the report, 15 applications registered as debt collectors in the Citizen Council for Security and Justice of CDMX, They continue in the Play Store. One of them is JoyCrédito, who promises loans of $800 up to $18,000 pesos “without paperwork, without advances and without collateral.”
JoyCrédito is located at a list of 340 fraudulent apps. Despite breaking the rules of the Play Store and dozens of comments from affected users, JoyCrédito is available for download.
“The amount they lend you is very low, the interest is very high and the time to pay it is very short, they are very aggressive in collecting, as soon as payment day has arrived and they bombard you with messages, threatening and aggressive calls” , mentions a user in the comments.
How “drop by drop” loan apps work
Drop by drop loan apps (or montadeudas) are a type of informal loan which has become popular in recent years. These applications offer loans that are quick and easy to obtain, but with very high interest rates. In some cases, interest reaches 100% and Penalties for non-payment translate into threats and intimidation.
He modus operandi of these companies is the same: easy loans with no credit history and just an ID. After installing the application the user must authorize access to your contacts, files (photos, documents) and other data of the mobile. Subsequently, the person will fill out a form with their information and the requested amount to receive it in their bank account.
When late with a payment, companies will begin to harass the user and threaten them with payment or they will accuse them of fraud with their loved ones. Because the app has access to the contacts and photos of the mobile phone, the debt collectors They send intimidating messages or montages of porn photos and videos to acquaintances of the debtor.
In some cases, it will be enough to open the app for the first time and authorize the permissions for the extortion to begin. The data is shared with multiple applications, who send intimidating messages. The authorities have received hundreds of reports and proceeded with the complaints, however, criminals have managed to circumvent Google’s barriers with simple tricks like changing the name of the app.
The company confirmed that it is already collaborating with the authorities in ongoing investigations. “We take this issue very seriously and are committed to offering a secure platform for billions of Android users,” said Ricardo Zamora, director of communications at Google Mexico.