Nanocred faces huge fine for deception and usury in Fintech.

TLDR:

Colombian fintech Nanocred faces a massive $327 million fine from the Superintendency of Industry and Commerce for deception and usury. The company misled users on its Profin App, subjecting them to high interest rates and hidden fees. Nanocred must refund excess interest charged to consumers and inform them directly. Appeals are open, but this case highlights the importance of consumer protection in the evolving fintech sector.

Colombia’s consumer watchdog, the Superintendency of Industry and Commerce (SIC), issued a $327 million fine to fintech Nanocred for misleading users and charging illegally high rates on its Profin App.

The SIC found that Nanocred violated consumers’ rights by not providing sufficient information about contracts, leading to high interest rates and hidden fees. The company also engaged in misleading advertising, falsely implying SIC endorsement.

Nanocred has been ordered to refund all excess interest charged to consumers and inform them directly about the refunds. The case highlights the importance of consumer protection in the rapidly evolving fintech sector.