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sparks

Mar 8, 2012, 6:22 AM

Post #1 of 15 (2084 views)

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Two types of women's banks in Mexico?

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I've heard of the award winning banks that get indigenous women started in small business. I'm running into another type of bank that seems to be preying on poor and undereducated women.

Seems they get groups of about 20 women and then loan them money for any type of business (like selling door to door beauty products, etc). The interest rates are high, very little background check and no advise on how to run a business.

One neighbor's business wasn't doing well and they threatened to take everything in their house if they didn't pay. Then 2 women in the group fled town and "the bank" is holding all the others responsible ... with threats of taking their household goods. A licenciado from Manzanillo showed up at their door yesterday.

I have no idea what kind of contract they signed or if any of them cared what it said. Sounds like there are a number of these 'banking' groups in the Melaque area.

Sparks Mexico - Sparks Costalegre

Bennie García

Mar 8, 2012, 7:58 AM

Post #2 of 15 (2046 views)

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Re: [sparks] Two types of women's banks in Mexico?

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The people that lend at usuary rates are called "agiotistas". They are as common as dirt and aren't really a woman's bank although many of them are women. There are 2 very modern looking businesses on the highway in Jaluco that are owned by a very successful agiotista.

sparks

Mar 8, 2012, 8:31 AM

Post #3 of 15 (2035 views)

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Re: [Bennie García] Two types of women's banks in Mexico?

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I'm sure these agiotistas presented it as similar to a bank. Some women here learning a lesson the hard way.

Sparks Mexico - Sparks Costalegre

Bennie García

Mar 8, 2012, 9:59 AM

Post #4 of 15 (2012 views)

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Re: [sparks] Two types of women's banks in Mexico?

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No sparks, they don't present themselves as banks. Everyone knows exactly what they are and how it works. Not all loans turn out bad. Been around for a long time. And while some may be ruthless, as long as unsecured loans through conventional financial institutions remain very difficult to obtain they'll be around for a long time to come. Nothing new under the sun.

Vichil

Mar 8, 2012, 12:43 PM

Post #5 of 15 (1969 views)

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Re: [sparks] Two types of women's banks in Mexico?

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My cleaning lady has an aunt who charges her 100 pesos for every 100 pesos she borrows...The aunt loans money to the whole neighborhood. Everyone knows where to go when they need money and they pay dearly for it.
We had the same thing going on in San Francisco in Chinatown and I knew a Korean womam who was a loan shark in La doing the same thing in the Korean community. Where ever you have people too poor to deal with bank to borrow money you have loan sharks. That is teir names there are not banks.

Yacatecuhtli

Mar 8, 2012, 2:39 PM

Post #6 of 15 (1944 views)

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Re: [Vichil] Two types of women's banks in Mexico?

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Well even banks have ridiculous interest rates.....

according to the website "tu decide"

the Banco Azteca classic visa card has an interest rate of 190% ....
http://www.tudecide.com/.../Banco_Azteca/130/32

while Banco Walmart mastercard has an interest rate of "only" 94.82%
http://www.tudecide.com/Empresa/Banco_Wal-Mart/130/35

! Al pan, pan y al vino, vino !

(This post was edited by Yacatecuhtli on Mar 8, 2012, 4:47 PM)

La Isla

Mar 8, 2012, 3:00 PM

Post #7 of 15 (1935 views)

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Re: [Yacatecuhtli] Two types of women's banks in Mexico?

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In Reply To

Well even banks have ridiculous interest rates.....

according to the website "tu decide"

the Banco Azteca classic visa card has an interested rate of 190% ....
http://www.tudecide.com/.../Banco_Azteca/130/32

while Banco Walmart mastercard has an interested rate of "only" 94.82%
http://www.tudecide.com/Empresa/Banco_Wal-Mart/130/35

OMG, who would be "interested" in interest rates like these? : )

sparks

Mar 8, 2012, 3:11 PM

Post #8 of 15 (1933 views)

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Re: [Vichil] Two types of women's banks in Mexico?

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On a Navy ship in the Pacific where there were no banks we had 'slush' funds. Borrow 5 for 7, 10 for 14, etc. Even tried it myself until I loaned to a very big guy that didn't want to pay. Friend came home and bought a white, '63 Chevy convertable with earnigs.

Everyone in Mexico may know what these things are ... but lots of people are using them without knowing what they are getting into. Maybe some more reputable than others

Sparks Mexico - Sparks Costalegre

Vichil

Mar 8, 2012, 4:58 PM

Post #9 of 15 (1899 views)

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Re: [sparks] Two types of women's banks in Mexico?

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Banco Azteca in Chiapas is full of indegenous who can barely read or write. They know it is an expensive way to do business but they have no choice it is put yourself indebt and pay a high price or do without whatever.

CanuckBob

Mar 8, 2012, 5:00 PM

Post #10 of 15 (1899 views)

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Re: [Bennie García] Two types of women's banks in Mexico?

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Benny, are these similar to the "payday loan" type of places NOB??

Bob
Inside Lakeside
http://www.insidelakeside.com

chinagringo

Mar 8, 2012, 5:11 PM

Post #11 of 15 (1892 views)

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Re: [CanuckBob] Two types of women's banks in Mexico?

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CB:

Not sure about Canada but in the US, loan sharks and pawn shops (another source of instant money) have been the underground source of money for years. Then the quasi legal form called Payday loans came along. All prey on those in monetary trouble and then the hole becomes deeper. Now banks and some credit unions have started playing in this venue.
Regards,
Neil
Albuquerque, NM

arbon

Mar 8, 2012, 5:19 PM

Post #12 of 15 (1890 views)

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Re: [CanuckBob] Two types of women's banks in Mexico?

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"Payday lenders are required to be licensed with Consumer Protection BC under provincial law.

Under payday loan laws enacted in 2009, lenders are restricted from unfair practices such as collecting a repayment from an employer or getting unrestricted access to your bank account. Lenders cannot charge more than 23 per cent of the amount borrowed."
~~~~~~~~~~~~~~~~~~~~~~~

chinagringo

Mar 8, 2012, 5:43 PM

Post #13 of 15 (1882 views)

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Re: [arbon] Two types of women's banks in Mexico?

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Canada is so much better on this issue than their neighbors to the south!
Regards,
Neil
Albuquerque, NM

sparks

Mar 8, 2012, 5:46 PM

Post #14 of 15 (1879 views)

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Re: [Bennie García] Two types of women's banks in Mexico?

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I guess this is a bank. They were over tonight and told be the name .... Compartamos Banco. Largest lending bank in Latin America. Search the bank name on Google for more info

http://www.compartamos.com/wps/portal/Inicio

Sparks Mexico - Sparks Costalegre

mazbook1

Mar 8, 2012, 8:46 PM

Post #15 of 15 (1847 views)

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Re: [sparks] Two types of women's banks in Mexico?

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Sparks, If you look at their "products" on the website, the first two are loans to groups. These require a "solidarity guarantee", meaning that everyone signs and is considered a co-signer on the loan and that type of co-signer is on the hook for the full amount should the rest quit the project (assuming that the Banco can't collect anything from them). That's where the groups you're speaking of went astray. I'll agree, the Compartamos loan officer probably did not explain that thoroughly to the women involved, and the women are probably not well enough educated to TRULY understand what they're signing. I don't think Compartamos is deliberately trying to mislead these folks, but there should be SOME sort of educational program for them BEFORE they sign such a thing.

Nowhere on the website does it disclose what the interest rates are for these types of loans, but Compartamos is a fully approved Mexican bank and highly rated internationally for their micro-loan program (being fair and honest) I think their interest rates are probably quite inline with the Mexican banking industry. Mexican bank loan interest rates (whatever they are) look usurious to us, but they're pretty normal for México.

(This post was edited by mazbook1 on Mar 8, 2012, 8:47 PM)