Colombia’s consumer watchdog, the Superintendency of Industry and Commerce (SIC), issued Resolution 2972 fining fintech Nanocred Colombia a staggering 1,020 monthly minimum legal wages, equivalent to $1.326 billion pesos ($327 million USD). The SIC determined Nanocred violated consumers’ right to receive truthful, sufficient, precise and timely information about using the Profin app platform.
Consumers were bound to contracts through a credit simulation on the Profin App without proper information about the acquisition, subjecting them to exorbitantly high interest rates and hidden fees. The investigation also identified aggressive and invasive debt collection tactics employed by Nanocred.
🚨ATENCIÓN | La #SICdelCambio sancionó a la fintech NANOCRED COLOMBIA S.A.S. con una multa de 1020 SMLMV, equivalente a $1.326 millones, por usura y vulneración de derechos de l@s consumidores a recibir información, protección contra publicidad engañosa y protección contractual👇 pic.twitter.com/erGNr00eRj
— Superintendencia de Industria y Comercio 🇨🇴 (@sicsuper) March 19, 2024
Moreover, Nanocred engaged in misleading advertising by falsely implying or directly stating its services carried SIC endorsement or authorization, inducing consumer error.
The SIC ordered Nanocred to refund all excess interest charged to consumers for loans issued since May 16, 2021, based on the legal maximum interest rate set by the Financial Superintendency for the contract period.
Nanocred must directly inform each affected user about the refund, documenting the contact method, date, and result. They must also prominently publish an explanatory notice about the excess interest refunds on their website, social media, and physical premises.
Appeals remain open, but this sanctions a fintech abusing consumer trust and skirting lending laws as the sector rapidly evolves. The technological vanguard breached its legal ceiling on exploiting users.
