Mercado Libre faces criticism over predatory lending and debt collection

Reports have emerged regarding aggressive debt collection practices and high interest rates associated with Mercado Libre’s financial services, specifically Mercado Pago and Mercado Crédito, in Argentina. Victims, many of whom are women working in the informal economy, have reported being subjected to harassment through private calls and threats to contact their personal acquaintances and employers.

Some users claim that interest and penalties caused their debt to escalate to several times the original loan amount. In response to growing criticism regarding these lending practices, an internal report was circulated via social media suggesting that the company maintains lower delinquency rates than others. Critics argue this move is an attempt to minimize the impact of high interest rates and deflect responsibility from both the company and the national government.