SIC opened investigation against Nanocred Colombia, owner of "profin app" for alleged consumer rights and personal data regime breaches

The Superintendence of Industry and Commerce (SIC) of Colombia, as National Authority for Consumer Protection and Protection of Personal Data, launched an administrative investigation against NANOCRED COLOMBIA S.A.S., for alleged violations of the consumer protection regulations, within the legal framework of credit operations carried out through "PROFIN" app. 

Regarding the consumer protection investigation, it began as a result of a preliminary inquiry that included information requirements and inspection visits to the business facilities where the company NANOCRED operates. After the initial procedures, the SIC found merit to open a formal investigation against the company, finding that in at least 20 loan cases, illegal interest were being charged to consumers.  

Furthermore, other infractions related to the consumer protection rights that are being investigated are: 

1. Misleading information: for not providing sufficient, accurate and timely information in the loan contract, in relation to the discounts that will be offered to consumers for the use of the platform. 
2. Misleading advertising: for not informing the consumers that “PROFIN” is supervised by the SUPERINTENDENCE OF INDUSTRY AND COMMERCE (SIC).  
3. Lack of information: by not supplying in writing information related to the place of the signing contract, the address of the company head office and the actual maximum legal interest rate at the time of signing the contract. 

On the other hand, regarding the personal data infractions, this Authority opened an investigation to NANOCRED COLOMBIA S.A.S due to the fact that, through the app PROFIN, personal and sensitive data were collected during the request for digital loans, likely without having previous, express and informed authorization, as well It was also evidenced that the consumers were probably not informed of the specific purposes for which their data is collected or the related rights.