Easy Installments or Exploitation? HONOR Accused of Charging 55% Interest

Serious allegations have emerged against Chinese smartphone brand HONOR Bangladesh for allegedly operating a predatory interest scheme under the banner of “easy installment” facilities in Bangladesh’s smartphone market. Victim customers, consumer rights activists, and technology analysts claim that HONOR is effectively charging up to 55 percent extra on installment-based phone sales, which is a direct violation of consumer protection laws and existing financial regulations.

On Thursday (15 January), a visit to the HONOR Bangladesh showroom at Police Plaza in the capital revealed that the cash price of the HONOR 400 Lite smartphone is set at BDT 32,999. However, if a customer chooses to purchase the same phone on a six-month installment plan with a 50 percent down payment, they must pay an additional BDT 9,000 on the remaining BDT 16,500. As a result, a phone priced at approximately BDT 33,000 ends up costing nearly BDT 42,000. In effect, more than 55 percent extra is being charged under the name of installment convenience—completely contradicting the concept of “easy installments” and placing significant financial pressure on consumers.

Further discussions with a sales representative at the Police Plaza HONOR showroom revealed that the installment software for the recently launched X9D model is not yet fully operational. However, the representative stated that customers can currently obtain the phone by paying a 50 percent down payment.

Experts say that when calculated as interest, this rate translates into an alarmingly high annual interest rate, which cannot reasonably be described as an installment facility. Instead, they describe it as a carefully designed financial trap.

An even more serious allegation is that if a customer is late by even one day in paying an installment, the company remotely locks the phone. As a result, the device suddenly becomes unusable, disrupting important office calls, mobile banking, health services, and family communication. Despite paying for the phone, customers do not retain full control over their own devices—the control remains with the company’s server.

Tech expert Mirajul Islam stated that remotely controlling a customer’s personal device is a grave violation of digital privacy, data security, and consumer rights. Locking a phone without a court order is illegal and unconstitutional, according to legal and technology analysts.

There are also allegations that installment agreements do not clearly disclose the interest rate or the calculation of additional charges. Complex and ambiguous terms are allegedly used to mislead ordinary customers, which amounts to outright deception.

Mahiyuddin, President of the Bangladesh Mobile Phone Consumers Association, said that mobile device companies are charging up to 55 percent extra interest under the name of installment sales, which is a direct fraud against consumers. He added that while the government has announced a 60 percent reduction in duties to lower smartphone prices, and senior government advisors have spoken about price reductions, extracting additional money from customers in this manner is clearly against consumer protection laws. He called for immediate and strict action by the BTRC and the National Consumer Rights Protection Directorate, along with punitive measures against those responsible.

So far, no official statement has been received from HONOR Mobile Bangladesh. If a statement is received, it will be added to the report.