Recently, the Consumer Protection Authority has strengthened the regulation of FINTECHs, whose supervision is not subject to other special authorities such as the SFC, to safeguard the rights of consumers. After receiving complaints and applying sanctions, on 10 October 2023, the SIC issued External Circular No. 002, which established the following measures:
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FINTECHs must provide written information to consumers on interest rates, periodicity of payments, and number of installments at the time of entering into the contract.
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Default interest may only be calculated on overdue installments. In addition, FINTECH must provide information on credit assignments, guarantees, prepayments, among others.
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Threats and intimidation of consumers and third parties are prohibited, under threat of sanctions. The Attorney General's Office may intervene if necessary.
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FINTECHs must guarantee that their services do not harm consumers and provide clear, truthful information in Spanish, excluding abusive clauses from their contracts.
These measures respond to previous sanctions, such as fines of approximately COP 600,000,000 recently imposed on two companies for including excessive interest rates and not providing complete and adequate information to consumers. In addition, the reimbursement of monies overcharged to consumers was ordered, which demonstrates that the authority will exercise rigorous control over this type of activity.
