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Peru: 4 Lima stores lying to consumers about interest rates

(LIP-ir) -- Four well-known commercial establishments in Lima, which sell home appliances and other electronics, are under investigation for not clearly informing customers on interest rates, reported INDECOPI, the Peruvian Standardization and Accreditation Body.

In an interview with Expreso daily, Eva Cespedes, a representative of INDECOPI's Consumer Protection Committee, explained that there were several well-known establishments in the country's capital that were charging customers higher interest rates that what was being advertised.

"In various establishments, the interest rates advertised are not the interest rates customers are being charged. For example, in some loans a down payment is required, however, interest rates are being based on the total cost of a product," said Cespedes.

She added that there were many cases in which customers were not being informed on the debts they were acquiring, stating information was being held from consumers.

INDECOPI has discovered cases in which consumers were being charged 140 percent interest rates annually when agreements had established a 40 percent annual interest rate.

Investigations began last year and it was reported that INDECOPI would name the four companies within the next month.

Ventanilla, a district in Lima, along with the help of INDECOPI, has begun a campaign in which stands are set up near financial establishments and stores to make sure consumers are not confused or tricked when acquiring loans.

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# Elliot Ness says :
27 March, 2008 [ 13:49 ]

These four consumer "lending institutions" should be fined heavily and if found to do this again, closed.  And the customers already scammed should receive a full refund of any over-payment of interest due to the misrepresentation.
These guys are no better than loanshark mafia lenders.

# Adriana Como va says :
27 March, 2008 [ 18:28 ]

Never cease to be amazed that our senses tell us that CORUPTION is still well & Healthy in the lifestyles of Peru.

# Steamboat Willie says :
27 March, 2008 [ 20:59 ]

It would be wishful thinking on my part to think that Peruvian authorities will actually reprimand the violating companies.  Then again, if Garcia can achieve being elected president a second time then nothing could really surprise me. 

# GtelloZ says :
28 March, 2008 [ 01:20 ]

neither Garcia nor Peru's Lifestyle. That only happen because we as customers do not read carefully whatever we are paying and agreeing. In  my opinion, it happens too with services like telephones, cell phones, etc. I think is a leivmotiv that this companies have had acquired, beacuse of the passiveness of the peruvian average customer. The thing is that we need to react and check what are our real obligations and rights. Until then, if no one complains, they will be earning millions of soles for free.

# Martin says :
28 March, 2008 [ 07:26 ]

If these reports are accurate, then "belly up to the bar" and name names. Assist consumers by naming the stores that are charging such high interest rates so that consumers can make more intelligent purchasing decisions.