Colombia criminalizes gota a gota lending after surge in violence and debt

4 articles · Updated · Jacobin magazine · Apr 29

A new law now makes gota a gota lending—a practice affecting up to a quarter of Cali’s population—a criminal offense in Colombia.
These informal loans, often run by criminal organizations, charge interest rates up to 400% annually, trapping poor borrowers in debt and exposing them to threats, violence, and even forced labor.
Gota a gota profits rival the cocaine trade, fueling homicides and organized crime, especially in Cali’s poorest neighborhoods, where young men are frequently recruited as debt collectors or assassins.

Does outlawing predatory loans without alternatives actually increase the danger for the unbanked?

Can fintech innovations outpace the global expansion of criminal loan shark networks?

Why are police overlooking debt collectors who directly fuel the city's homicide rate?

Beyond money, what can break the psychological grip these lenders have on communities?

As Colombian crime expands, are European nations prepared for 'drop by drop' violence?