In Argentina, the Under-State Secretariat for Consumer Defense Measures added a group of fintech companies for suspected abusive and fraudulent behavior for violations of the Consumer Protection Act. Criminal charges have also been filed. This was reported in an article by BAE Business. After learning about the facts, the Argentine Fintech Chamber made a statement rejecting fraudulent practices.
According to BAE Negocios, the Department for Productive Development said they were awarded to retirees and beneficiaries of the AUH (Universal Child Allowance), contracts they had never applied for.
“Due to the disclosure of web data for online sales, many consumers said they were borrowers who didn’t need them,” they said in the article. Other reasons for the complaint were alleged “inappropriate debts to savings banks and checking accounts” and the deduction of “sealed”, “folders” or “administrative expenses” that would not correspond. Abusive sentences would also have been found.
Statement by the Argentine Fintech Chamber
After acknowledging the complaint, the Argentine Fintech Chamber made the following statement:
“Today we are aware of a complaint from the Ministry of Productive Development involving non-bank credit companies. As a chamber, we promote constant improvement in the practices of an industry with more than 250 participants. We are against any kind of fraudulent modality and we reject it Practices that may violate the law and users, with this in mind, and particularly with regard to electronic collection of credits, we have a code of conduct regarding the use of formally formulated direct debit that was proposed to the relevant authorities in mid-March.
The fintech sector is committed to real, efficient and transparent financial inclusion of the entire population, especially those with fewer resources. Proof of this is the high level of compliance and continuous growth that our employees’ services have registered with users over the years, especially in connection with the quarantine caused by the COVID-19 pandemic. “
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