A North Carolina online credit service has been fined by the Connecticut Department of Banking and ordered to reimburse borrowers in the state after offering high-interest loans without a license.
An investigation by the department’s Consumer Credit Division showed that since 2016, PayTomorrow has made at least 307 small loans to Connecticut borrowers at an annual percentage rate of more than 12%, despite not having a small loan license.
PayTomorrow has agreed via a consent order to pay a $10,000 civil penalty and $3,200 in back licensing fees, and to reimburse $3,996 to borrowers in Connecticut.
PayTomorrow is a privately held fintech company established in 2013. It operates via an online payment platform, allowing consumers to purchase goods on credit from participating stores.
