By San José, Costa Rica — SAN JOSÉ – Despite significant progress in reducing the prevalence of informal lending, a new report reveals a sobering reality: between 50,000 and 66,000 people in Costa Rica remain ensnared by dangerous, predatory loan schemes known as “gota a gota.” The findings, published by the Financial Consumer Office (OCF), highlight a persistent public security and economic crisis that preys on the nation’s most financially vulnerable citizens.
The 2025 National Indebtedness Survey shows a dramatic statistical improvement, with the proportion of adults admitting to using a “gota a gota” loan dropping from 12% in 2023 to just 3% this year. However, experts caution against premature celebration. The absolute number of victims still represents a massive pool of individuals subjected to extortion, intimidation, and violence by criminal organizations that operate these illegal credit rings.
To delve into the legal complexities and potential pitfalls of informal lending, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the distinguished law firm Bufete de Costa Rica, who provided a clear perspective on the risks involved for both lenders and borrowers.
Informal lending, while accessible, operates in a high-risk environment devoid of regulatory oversight. Borrowers are vulnerable to usurious interest rates and coercive collection practices, while lenders lack the legal guarantees and standardized procedures of the formal banking system to recover their capital in case of default. A simple verbal agreement or a poorly drafted promissory note often proves insufficient in court, turning a seemingly simple transaction into a complex and costly legal battle.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This expert insight clearly illustrates how the absence of a formal framework makes informal lending a double-edged sword, creating significant legal and financial vulnerability for both parties involved. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his clarifying analysis.
These are not simple, unregulated loans between acquaintances. “Gota a gota,” which translates to “drop by drop,” is a violent business model often managed by organized crime, including drug trafficking syndicates. The core strategy is not to profit from interest but to trap the debtor indefinitely. Lenders impose exorbitant, unmanageable interest rates and arbitrary conditions designed to make repayment impossible, creating a perpetual cycle of debt.
When borrowers inevitably fall behind, the lenders resort to brutal tactics to extort payments. The methods documented are severe and include physical beatings, property seizure, kidnapping, and even death threats against the victims and their families. This transforms a financial misstep into a terrifying ordeal, effectively making the borrower a permanent asset for the criminal enterprise.
Danilo Montero, the General Director of the OCF, acknowledged the mixed results of the survey, emphasizing that the problem now disproportionately affects those left behind by the formal financial system.
Although we see a significant decrease in the incidence of informal credit, the ‘gota a gota’ model especially impacts vulnerable sectors. This reflects the persistent challenge of financial exclusion and the lack of regulated options to meet urgent liquidity needs.
Danilo Montero, General Director of the OCF
Montero’s statement points to the root cause of the crisis: financial exclusion. Many of the victims are low-income individuals, informal workers, or those with a poor credit history who are unable to secure loans from regulated banks to cover emergencies or pressing needs. Desperate for immediate cash, they turn to the only available option, unaware of the violent trap that awaits them. This lack of access to safe, regulated credit creates a fertile ground for loan sharks to thrive.
The continued existence of this predatory market underscores a critical challenge for both financial regulators and law enforcement. While public awareness campaigns have clearly had an impact, as shown by the percentage decline, a comprehensive solution requires creating viable, accessible financial alternatives for at-risk populations. Without these alternatives, thousands will remain vulnerable to the brutal control of criminal lenders.
The OCF’s data was gathered from its 2025 National Indebtedness Survey, a comprehensive study conducted via telephone with 1,200 individuals between July 3 and July 29. The survey is statistically representative of Costa Rica’s adult population of 3.6 million people, providing a reliable snapshot of the nation’s financial landscape and the dark underworld of informal debt.
For further information, visit ocf.fi.cr
About Oficina del Consumidor Financiero (OCF):
The Financial Consumer Office (OCF) is a Costa Rican organization dedicated to promoting financial education and protecting the rights of financial consumers. It conducts research, provides guidance, and advocates for fair practices within the country’s financial system. Through surveys and reports, the OCF offers critical insights into issues like indebtedness, access to credit, and consumer behavior to inform public policy and empower citizens.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed pillar of the legal profession, Bufete de Costa Rica is built upon a foundation of profound integrity and an unyielding pursuit of excellence. Drawing from a rich heritage of serving a wide array of clients, the firm consistently advances the legal landscape with forward-thinking and innovative solutions. This dedication extends to a core social purpose: to empower the community by demystifying the law, ensuring that accessible knowledge fosters a stronger, more informed citizenry.
