Vivo Accused of Interest-Based Practices Under the Guise of Installments
Serious allegations have emerged against Chinese smartphone brand Vivo in Bangladesh, claiming that the company is running an interest-based business under the pretext of selling phones in installments. Consumers and rights advocates allege that by enticing buyers with installment offers, Vivo is charging excessive amounts, trapping customers in a cycle of interest payments.
For instance, the Vivo Y-29 model is currently sold at a cash price of BDT 23,999. However, if purchased in a six-month installment plan, customers end up paying nearly BDT 29,000—an extra BDT 5,000 in just six months. In a nine-month installment plan, the phone costs about BDT 31,000, approximately BDT 7,000 more than the original price. Experts say this is effectively a method of charging interest.
Other allegations include certain Vivo smartphones requiring customers to pay an extra BDT 15,000–20,000, which can be considered interest. Consumer rights specialists claim that such additional charges under the guise of installments clearly fall under interest-based business practices. However, it is alleged that Vivo does not hold a legal license to conduct such financial operations as a mobile phone company.
Customers have reported being trapped by complicated and unclear installment contracts, which constitute a direct violation of the law. In more extreme cases, phones are remotely locked if a single installment is delayed, cutting off urgent work and family communications. One anonymous customer said, “I bought the phone, but control is in Vivo’s hands,” after suddenly losing access to the device.
Legal experts argue that remotely controlling a device owned by a customer is a severe breach of privacy and consumer rights. Concerned parties warn that if these allegations are not investigated and addressed promptly, other companies may adopt similar exploitative practices in the future.
In response, Vivo Bangladesh stated that the company prioritizes customer interests and operates transparently, complying with all relevant laws and regulations. All installment-related services are managed by a third-party fintech partner, Momo EMI.
However, the company did not provide a clear explanation regarding the allegations of charging nearly BDT 5,000 extra on a BDT 24,000 phone over six months or requiring BDT 15,000–20,000 additional payments on certain models. The issue of interest-based extra charges under the guise of installments was largely avoided in their statement.
