The Federal Government has explained why its agencies are shutting down some illegal online banks as they intensify their enforcement drive on unlicensed online money lenders across the country.
This is coming some months after the government set up a joint committee to investigate rights violations and unfair practices in the money lending industry and subsequently shut them down.
The federal government said that these money lenders who were not registered with the Corporate Affairs Commission (CAC), were engaged in activities that were against the rights of Nigerian consumers.
This was made known by the Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), Mr. Babatunde Irukera, during an enforcement exercise on a moneylender company in Lagos.
- Irukera who led a team of operatives and men of the Nigeria Police Force on the enforcement exercise frowned at the naming and shaming violation of people’s privacy with respect to how these lenders recover loans.
- He said that the interest rate charged by these online financial institutions appears to violate the ethics of how lending is done.
- Going further, the FCCPC boss said that investigations had revealed that the loan firms were neither Nigerian companies nor registered in the country as most of these companies operate from the same place and are operated by the same person.
According to reports from Punch Newspaper, the list of online banks affected by the shutdown include the following GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni.
Back in December, the Federal Competition and Consumer Protection Commission (FCCPC) has said that the joint committee that was set up by the Federal Government to tackle violation of consumer rights and unfair practices in the money lending industry will shut down illegal businesses at the commencement of its enforcement.
What the FCCPC CEO is saying
Irukera said that the commission got information about the online money lenders during the COVID-19 lockdown in 2020, which led to many of them coming into existence.
He said, “More so, because people were on lockdown due to the pandemic, people started needing small easy loans, which is understandable.
“However, over a period of time, people started complaining about the malpractice of the lenders. So, we started tracking it.
“The key two things that were subjects of concern were what seems to be naming and shaming, violation of people’s privacy with respect to how these lenders recover the loans.
“Secondly, the interest rate seems to be a violation of the ethics on how lending is done. So, those were the two things that we set out to look for.
“We started an investigation trying to determine the location of these people and that has been a very difficult thing.
“We did that for several months and so one of them has moved from one place to the other and we have been visiting this place for months.”
Irukera said the commission found out that most of the companies operate from the same place and actually by the same person, adding that such unlicensed online money lenders in Nigeria do not have addresses in the country and are not registered in Nigeria with the CAC nor have any license to do their businesses.
What you should know
- Recall that earlier in November 2021, the Federal Government moved to check some of the illegal, unwholesome , and unfair practices in the money lending industry with the setting up of a joint committee to address the situation.
- The committee that received over 500 electronic mails and information in respect of the investigation was expected to through their activities lead efforts to address multiple potentially dubious conducts of certain money lenders, otherwise known as loan sharks.
- The FCCPC had in December 2021, given a notice that the joint committee that was set up by the Federal Government to tackle violation of consumer rights and unfair practices in the money lending industry will shut down illegal businesses at the commencement of its enforcement.
- The joint committee is made up of representatives from FCCPC, the CBN, the Economic and Financial Crimes Commission (EFCC), National Information Technology Development Agency (NITDA), and the National Human Rights Commission (NHRC).
Best News ever. Those loan company were really menace to the society.
Banking them is not enough, they should be enforced back the essess taken from the customers
I’m even facing it right now, they are threatening me seriously, I felt I should just commit suicide today it seems this people really want me out of the world, I mean lcredit agents
I borrowed N7000, seven thousand.. today am owning over N25,000 not only on that.. I tried using my ATM card to settle this bills, the one of Okash.. it wasn’t going through.. I had to do transfer from my account to the account number allocated for transfer or bank deposit.. I transferred N4950, forwarded the transfer details to them on email as the said after confirmation, the reduction will reflect on my account with them.. Till today, the N4950 is on no account.. and still everyday the bill keep increasing.. I sent several emails to them warning them to stop such increment. God.. I don’t know how this came about preying on Nigerians. Today now am owning money I didn’t eat or spend.
Addmoney loan app too…. They are criminal they will borrow you 17k to pay 35k in 7days ad they will be threatened to put pictures of lenders on social media ad contracts… They are killing people
Yeah that’s too common in LCredit….i borrowed this money for my mum cos there was nothing at home and a friend introduced me to this app,but fortunately for my mum was unable to pay back,I lost my phone in this process,now they’re threatening my contact list,their interest per day cos no I am overdue is 2.5%
The Gocash and Fast money are the ones that really needs to be shut down…these guys are killing more Nigerians that insurgency does😢😢
Only God is the reason why I am alive today… I thought of committing sucide severally but I said overcame that temptation. Pls I don’t know why these loan companies are benefiting in distroying innocent lives..
The #20,000 I borrowed from I credit has now increased to #56,700 even as i have paid #12,000 I have told them I won’t pay anymore unless they reverse it to the normal remaining money. I money did same and even sent messages to my contacts easycredit xcash new credit naira plus Ncash easymoni easy cash and so many others should be traced and shut down until they change from their fraudulent act by victimizing people with their outrageous interest rate as. as well as overdue charges and harassment, I can’t even take care of myself anymore because they’re reaping me off and I have told both of them I won’t pay more than what I borrowed with the interest that was accompanied, period, they’re wicked , it’s now I know they’re Chinese, no wonder they don’t care about their customers
They seem to derive pleasure in doing this to people, if I am owning any loan shark and find my details on public domain, I won’t pay. I repeat, I wont pay. All the ones mentioned as being investigated now, If I verify that I owe any I will not pay until they are cleared by FCCPC
I think, there are many more,addcash, any loan,credit9ja,deloan,zuma, starLoan and many more, high interest rate and within 7 day, since a day to due date, their will start treating you by sending your name, phone number,BVM and even picture to your contact, telling them you gave them the number as grantor.
I think you have to do something very very serious about this people,alot of people are frustrated.