As requirements for obtaining credit in the traditional financial system have tightened — where a significant share of personal loan applications are rejected — digital lending platforms have found a growing market across the region. Thousands of users turn to these apps, lured by the promise of money deposited in minutes, with no paperwork and no credit check, only to end up facing financial conditions far less favorable than those advertised.
Complaints filed by consumers and recorded by regulatory agencies in several countries indicate that some of these platforms charge interest rates that can exceed 60% per year, in addition to administrative fees exceeding 30% of the disbursed amount. In many cases, the user sees an apparently low interest rate, but at the time of disbursement, substantial amounts are deducted under justifications such as management fees, operational commissions, or ancillary services. There are also platforms that structure their operations through the sale of associated digital products, incorporating charges that substantially raise the final cost of the loan.
The situation worsens when payments are delayed. To function, many apps request access to sensitive phone functions, such as the camera, photo gallery, and especially the contact list. According to complaints recorded in several Latin American countries, some platforms use this information to pressure debtors by sending messages to family members, friends, or employers. In extreme cases, victims report digital harassment campaigns involving intimidating messages, public exposure of the debt, and disclosure of personal data. In Mexico, this practice became known as "montadeudas" and prompted police investigations and operations against networks dedicated to these activities.
A user identified as Carmen reported on social media that, after failing to repay her first loan, the platform itself directed her to a link for another app so she could take out a new loan to pay off the previous debt. In less than a month, she was trapped in a cycle of five different apps, all with aggressive collection mechanisms.
The speed at which these platforms multiply tends to outpace the ability of regulatory frameworks to adapt. In Paraguay, the Public Prosecutor's Office and the Secretariat for Consumer and User Defense (Sedeco) have recorded an increase in complaints related to abusive collection practices and harassment. In Chile, the Financial Market Commission issues periodic warnings about platforms operating without authorization. In Colombia, the Financial Superintendency recommends that users verify in advance whether entities are registered and authorized to operate.
Experts consulted on the issue agree that the problem requires a combination of regulatory measures, prosecution of cybercrimes, and expanded financial inclusion. As long as large segments of the population continue to face difficulties accessing formal credit, high-cost lending platforms will keep finding room to grow, exploiting the urgent needs of people who often have no alternatives within the traditional banking system.