Is a loan that blocks cell phones in case of default a scam?

Secured loans usually have lower interest rates. However, this is not what happens with cell phone deals under warranty, which are usually associated with offering low values.

This loan exists in other parts of the world, but is distorted in Brazil. This is what the source the report spoke to, who preferred to remain anonymous, says. According to the source, loans of this type have interest rates ranging from 5% to 15% per month, and given the difficulty and cost of recovering a cell phone in the event of default, companies start blocking the cell phone as a means of coercion. The consumer must pay the debt in order to regain access to the device. On its website, Supersim gives an example: a loan of R$1,000 over 12 months at an interest rate of 12.5% ​​per month would have installments of R$175.72 – a total of R$2,108.64, more than double the initial value of the debt, according to Carlos Castro, a financial planner certified by Planejar.

One of the videos teaches people how to download the app. It is not available in the official stores and the company still asks the person to disable a feature of Google Play called Google Play Protect. According to Google, the tool looks for malicious behavior in apps and devices.

Once the app is downloaded, it can no longer be deleted. Only the company responsible for the app can remove it. Supersim claims that the app is “completely harmless to your cell phone and cannot access or modify anything on the device.”

Practice is allowed

This type of operation is not a crime. Companies can offer loans with cell phones as collateral. According to Christian Brents, legal coordinator at Idec (Brazilian Consumer Protection Institute), there is a court dispute over this issue. In November 2022, Idec and MPDFT (Public Ministry of the Federal District) filed a general civil lawsuit demanding that two companies stop offering loans with cell phones as collateral – SuperSim and Socinal.