When signing the contract, the institutions install an app on the cell phone, which may stop working in case of default. Find out more!
Getting a loan without collateral is not easy, especially if the person has a history of defaulting on loans. However, there is currently a new type of credit that is gaining popularity among Brazilians and making it easier to get a loan: leaving your cell phone as collateral.
This may seem “ok” for those who are more structured and will be able to pay the debt installments. However, for those who are family men and are struggling, the situation becomes more difficult and this may be the only solution to be able to pay some bills, having more “spare time”.
Although it may seem “easy”, there are some criteria that must be met by the lender before you can get the loan, even if you leave your cell phone as collateral. Learn more about this subject and see how this modality works.
Loan with cell phone as collateral
There are some criteria that must be met by the consumer before the institution releases the loan. Many banks can facilitate this concession even for those with bad credit, however, they must have a signed work card and receive at least a minimum wage.
This type of loan also reaches retirees, pensioners and public servants. When closing the contract, the financial company asks the person to install an application on your cell phone. If the loan amount is not paid on the agreed dates, the company activates the app and blocks the cell phone's functions, which can only make emergency calls.
After the customer pays off the debt, the cell phone returns to working normally, deactivating the blocking functions of the installed application. This type of loan offers credit of up to R$1,500, which can generally be paid in up to 12 installments.
Companies that offer credit with cell phone collateral
– Juvocredit;
– Supersim;
– Good credit;
– Finazero;
– Pericred;
– Bancopan;
– Loansyes;
– Simplic;
– Ikiwi.
Requirements vary between companies and some prefer to just Samsung cell phones. Others are more demanding, but the ideal is to buy the income, send the necessary documents and have a cell phone that is accepted by the financial institution. In most cases, if the proposal is accepted, the loan amount will be deposited into the account within a few minutes.
Controversy surrounding the modality
The courts in Brasília have banned credit companies from blocking the cell phones of customers who have defaulted on their payments. The decision also prevents companies from signing loan agreements that require cell phones as collateral, blocking their functionality in the event of default.
The lawsuit was filed by the Public Prosecutor's Office of the Federal District and Territories and the Consumer Defense Institute. According to the lawsuit, the companies offer loans and use the cell phone as collateral. When signing the contract, the consumer is forced to install the application that blocks the cell phone's functions if he or she does not pay the installments.
According to the MP, the practice is not authorized by Anatel and there is no regulation on the subject. The authors of the action argued that the practice is abusive and illegal, since the cell phone serves as a coercive means to force the consumer to pay the installment.
For the MP, the practice is abusive and violates the fundamental rights of internet use and the civil internet framework. In the agency's assessment, the measure also violates the right to information and is classified as misleading advertising.
