Afterpay (ASX:APT) to pay US$1 million in refunds and fines

Afterpay (ASX:APT) has finalised an agreement with the California Department of Business Oversight (DBO) to settle a regulatory matter and have agreed to pay $1 million US in refunds and fines.

They say these settlement costs include a refund of late fees previously paid by California consumers (approximately US$905,000) and an administrative fee to the DBO (of approximately US$90,500, an amount equal to 10% of the total late fees identified).

As previously announced, Afterpay was granted the licence in November 2019 to facilitate a potential expansion of service offerings in the US.

Afterpay had been operating a consumer credit sale product in the state of California, providing services that enable merchants to sell goods to their consumers that can be repaid over time.

Afterpay rejects the view that the Company operated illegally.

Shares in Afterpay (ASX:APT) are trading 1.41 per cent lower at $19.64.
 
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Source: Finance News Network