Hello, and welcome to the Latin America Weekly newsletter! In this issue: Extortionists from Colombia face off with El Salvador’s Bukele. How Medellín went from cartel hell to urban haven. And Boric’s second shot at tax reform in Chile.
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Colombian loan sharks wreaking havoc in Latin America
There is no such thing as easy money. That adage rings true in Latin America, where a Colombian loan shark collective has expanded into at least 16 countries to prey on the poor.
Drop by drop. The modus operandi of the scheme is known locally as ‘gota a gota’ or ‘pagadiario’ (Spanish for ‘drop-by-drop’ or ‘daily payment’). Informal money lenders offer access to fast cash, with little to no creditworthiness checks. However, interest rates can be exorbitant, reaching up to 20 percent daily, often impossible to pay in the long run.
- Cash loans are received within hours, but recipients quickly discover that repayment delays can incur physical violence, even death threats. Criminals demand access to bank accounts and debit cards or simply...