Thursday 24 June 2021

Loan Shark Mafias Booming in Cali, Colombia

loan-shark

TODAY COLOMBIA – Micro-loan mafias are flourishing in Cali, Colombia, spurring violence and driving homicides as authorities scramble to find a solution.

Illegal lending operations in Colombia’s southwest city of Cali have emerged as full fledged mafias, complete with sophisticated organizational structures and violent enforcement tactics that include deploying cadres of armed “enforcers” to collect on petty loans charging interest rates as high as 40 percent, reported El Tiempo. The lending rings are known locally as “gota a gota” operations, meaning “drop by drop” in English.

- Advertisement -

The loans in question do not require credit checks, nor do they entail paperwork other than a signed agreement to pay. Most loans fall within a range of $30 to $150, with a ceiling of $300. Large home appliances are the most common form of collateral. Estimates suggest there are at least 28 such operations in Cali, with a combined customer base of some 50,000 people.

A former enforcer for one such operation told El Tiempo that his bosses could clear upwards of $40,000 in monthly profits, even after paying a staff of 15 enforcers.

Sources inside the criminal investigations division of the Colombian National Police (Policía Nacional de Colombia – PNC) suggest that much of the money circulating in these lending rings can be traced back to organized crime, specifically drug trafficking operations.

The PNC Chief in Cali, Nelson Ramírez, says the number of people being killed because of problems with illegal lenders is on the rise. Authorities estimate that around 10 percent of murders in the city are related to illegal lending operations.

- Advertisement -

Illegal loan sharking in Colombia is not a new phenomenon, but the increased size and sophistication of the “gota a gota” operations in Cali seem to be of growing concern for local police and prosecutors.

In late January, the Mayor of Cali, Maurice Armitage, announced a new effort to contain and shut down such operations.

Both at home and abroad, from Brazil to Honduras, loan sharking by Colombian organized crime affiliates has become a preferred method of putting illicit drug profits to use.

Despite the exploitatively high interest rates they charge and the violence associated with their operations, Colombian loan sharks are filling a real void of formal financial services for the poor, who often have no other recourse when financial hardship hits.

As one source told El Tiempo, “People need money. They can solve the problem. It’s a mafia that keeps growing.”

More Colombia news at TodayColombia.com

- Advertisement -

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

The 20 Nicaraguans detained by the Ortega regime in 25 days

TODAY NICARAGUA – Despite international pressure and rejection, Nicaragua President Daniel...

Rodolfo Méndez rules out new contracts for MECO and H Solís

QCOSTARICA - No more soup for you! If the Minister of...

MOST READ

Tourism sector depends on political will for recovery

QCOSTARICA - The future of tourism operators in Costa Rica depends on the political will to approve a package of bills that favors the...

Antivirus creator John McAfee found dead in Spanish prison cell

Q24N - You may not know John McAfee, of his eccentrics, but you are sure to have the name and may even have your...

Today’s Vehicle Restriction June 20: only “EVENS” can circulate

Today, Sunday, June 20, only vehicles with "EVEN" ending plates CAN circulate The measure is countrywide and applied between 5:00 am and 9:00 pm, save...

New trends in coffee consumption challenge sector

QCOSTARICA - Changes in consumption habits in terms of times, types of preparation and specialties challenge the coffee sector. Most of the consumers in Costa...

Internet speed decreases during peaks in service

QCOSTARICA - Ever wonder why your surfing on the Internet slows down, to even a crawl, mainly in the evenings? This is due to...

Today’s Vehicle Restriction June 18: 9 & 0 CANNOT circulate

Today, Friday, June 18, vehicles with plates ending 9 & 0 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

OIJ investigation into road works corruption leads to inquiries in Panama

QCOSTARICA - The prestige of the company of some of the richest men in Costa Rica hangs by a thread. For many, the MECO...

Carlos Alvarado: “Don Rodolfo has my confidence”

QCOSTARICA - President Carlos Alvarado said he has all the confidence in his Minister of Public Works and Transport (MOPT, Rodolfo Méndez Mata, and...

Will that be Cash or Sinpe Móvil?

QCOSTARICA - Sinpe Móvil is easy to use. From your phone, you can send money to friends, family and pay for things. Or receive...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.