A U.K.-based financial services firm that used automated decision-making to drive sales over ensuring whether customers posed credit risks dodged a penalty of 72.9 million pounds (U.S. $88.7 million) because it can’t afford to pay while reimbursing customers.
Amigo Loans specialized in giving loans to customers with poor credit histories that traditional lenders would avoid, typically charging interest rates of up to 49.9 percent. The company was “overly focused on profitability and ‘getting loans out the door,’” according to the U.K. Financial Conduct Authority (FCA).
