The Federal Competition and Consumer Protection Commission (FCCPC) has as part of its wide-ranging orders against unlicensed and illegal online money lending banks, has directed them to stop compounding interest and loan collection practices that are presently undergoing investigations.
This is as Nigerians have reacted to its ongoing enforcement exercise across the country against these illegal online banks with their unfair practices with the shutting down of some of these firms.
This disclosure is contained in a press statement issued by the Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera, and seen by Nairametrics.
Irukera in the statement warned that violators of this order will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).
What the FCCPC Chief Executive Officer is saying in the statement
Irukera, however, stated that the order does not include existing borrowers repaying legitimate loans under fair and acceptable terms and conditions or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness.
The statement from Irukera partly reads, ‘’In the interim, the Commission admonishes all the businesses that were subject of regulatory intervention on Friday, March 11, 2022, to cease and desist the interest compounding and loan repayment/collection practices that are the objects of this investigation.
‘’In the event that any of these businesses continue in any of this conduct, or the Commission receives credible evidence of such, violators will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).
‘’The Orders of the Commission are without prejudice to existing borrowers repaying any legitimate loans pursuant to fair and acceptable terms and conditions; or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness. The obligation to comply with the above extends to all operatives, employees or agents of the affected businesses.’’
Meanwhile, some Nigerians have been reacting to the shutdown of these unlicensed, illegal and defaulting online money lending banks by the inter-agency Joint Regulatory and Enforcement Task Force (JRETF) led by the FCCPC.
A Twitter user, Chris accused some people that are supporting the current exercise of taking loans from the listed apps and then want them to be shut down so that they won’t pay.
I guess you took loan from this apps you listed and you simply want them to shut down so that you won't pay again. Naija I hail una
— 🌋🏀♌🗿Chris (@ferdcrisx) March 14, 2022
Kabiru Ohida asked if the current struggle will see the light of day as he strongly believes that the owners of those companies are strong politicians in government, advising Irukera to fight with wisdom.
Is this struggle going to see the light of the day? I strongly believed that the owners of those companies are strong politicians (cabals) in this Government. Most of them are using the money that is meant to develop this Country. This man ( Irukera) should fight with Wisdom,
— KABIRU S OHIDA (@ohidacbaac) March 14, 2022
A Twitter user, Angel Essell said that one of the listed defaulting firms, LCredit is still on it and are still sending defamatory messages to contacts boasting that government cannot stop them.
Lcredit are still on it ooo
They are still sending Defamatory message to contact
Boosting that Federal Government can not stop them— Angel Essell (@EssellIfeoma) March 14, 2022
A Twitter user, Lekan Olagbami said that this was the way to go as the loan apps are becoming a source of heartaches and depression to many Nigerians. He said the loans are for just 7 days with very high-interest rates with abnormal daily dues and defamatory messages, adding that they should be regulated or banned.
This is the way to go. The loan apps are becoming a source of heartaches and depression to many Nigerians. The loans are for just 7 days with very high interest rates followed by the abnormal daily dues and defamatory messages. They should be regulated or outrightly banned.
— Leke Olagbami (@LOlagbami) March 15, 2022
Promise lamented that nothing good comes out from Nigeria and that is why other countries see us as bad people. She wondered why people would take loans and not payback.
Always Nigeria
Nothing good comes out
This is why other country sees us as bad people
Why would people take loan and don't want to pay back, what if it was their business?— PROMISE (@HIZZYJOEE) March 14, 2022
Alfred Osuagwu commended the government’s efforts at clamping down on these loan sharks, especially their fraudulent interest rate calculation and terms.
I commend this effort to clamp down on this loan sharks, especially their fraudulent interest calculation and their term which is full of ambiguities.
— Alfred osuagwu (@Fredo4liberty) March 14, 2022
Hirofunshi said that LCredit is the worst of them all, in fact, worse than Sokoloan, asking that special interest should be given to them.
LCredit is the worst of them all. Infact worse than Sokoloan. Special interest should be given to them @lcreditNg
— Hirofunshi (@Hirofunshi) March 14, 2022
Infact if government can shut them down finally would be the best way.they have killed some people inside there hearts by there threatening and blackmailing someone. How can they declare client to be wanted without the court oder.They threatening and blackmail one woman in my area tby declaring her wanted and post her pictures in all the social media Wich I had the evidence with me.the woman is now thinking of killing her self, imagine.
Obviously this loan shark people are devil and their representative are devilish also…. Imagine, someone taking a loan of 15k and 9k is disburse into his/her account to pay almost 6k as interest within 7days, it’s bad. The consumer would default? The interest is over 60% of the loan disburse… If the consumers will get that money within that 7days they would not have come to borrow in the first place. Some interest and servicing are hidden in some loaning apps, you will get the money before you know what you are paying. I suggest they ban them finally from our country, they are not helping us at all. Instead they are adding to our sorrows and pains
Good morning…. I will support the total short down of this loan app, this people have killed many Nigerians by sending there pictures viral through all there contacts and also threatening them if they failed to repay there loan. It has happened to a close friend in which led to his death….. SOKOLOAN, 9jacash, easy credit, etc….. Please help us do something for this people ooooo
total shut down is the way to go. They are cut-throats. and I thank some regular banks who’re now taking up the challenge. but if they should be let their terms and interest rates be in tandem with acceptable banking and financial norms and practices.
Greetings it’s very sad seeing de ways dis so called loan apps are treating our people how can you treat same people u borrow money to for 7days nd still go about sending der pictures nd calling dem names knowing dat once you start sending out der name’s in public ur money is gone cos d worse have been done to me I never liked dem cos de have sent many to der grave please let our government stand up on dis nd shout dem down forever it’s really sad nd shameful tnx
this is a good development. i am also a victim, i did not even know how they came across getting my full initials, i then called and asked from what source thave hey gotten my particulars and she told me it’s on the net. but i letter confirm that some staff with IPPIS are the ones distributing our information to all these companies.
my advice to both the companies and all the agencies, that are to go after them is that if any of the company director has been indicted should forfit his money and he or she should be sent to jail. but if their source of money is genuine they should review the interest been inpossed on Nigeria s. thanks for the job well done
but if i may comment if it is true the the
I think people that borrow money from them should pay the exactly amount without interest and let government shut down the ali
They are worse than the devil himself, how can you give someone loan of 19500 to pay 30k, or give someone 22k to pay 39500 all in 7days and you expect someone not to default, mintloan, cashbus 9cash,hicash, are all the perpetrators, the ones that even give you 2weeks is understandable but not 7days even though the 2weeks is not so good but way better than all these 7days, and the annoying thing is if on the said due dates you are yet to pay or even default they will post out uour pictures, as I told someone if my pictures is sent out, then what’s the need or use of paying back since they have disgraced and embarrassed me already so who lose?
These are the names of the evil ones that should be looked into also.
Mintloan, naira9ja, cashbus( 9cash, hicash), imoney, fast money, easi cash, to mention a few.
My own is if they can even be patience with the borrowers and collect installmently, no they will insult you, and tell you when we sent the money did we give you partly, very mannerless and uncultured individuals.
I was depressed but I had to tell myself that na owe I owe I no thief. Its really sad.
If they can just be polite, extend the duration trust me people will pay because they need quick cash, but in a situation whereby you insult me and post my pictures how do you want me to pay again after all the embarrassment?
Please look into those companies I listed they have sent people to early depression
Lcredit and 9ja cash are currently sending defamatory messages to contacts.Claiming the victim is trying to run with their money
Federal Government should Ban all the Loan app now, firstly the interest rate is too much with the duration of which to refund the money and if you default the daily overdue charges is too much… Secondly they should probe the network providers too, how will they give them the right to invade the privacy of customers even to extend of going to their archives to collect pictures… Thirdly all the Loan apps expose the customer’s BVN, Bank account number and their Atm numbers to all the contacts they send messages to…. Infact they are still sending Pictures and messages to all contacts till now… Alot of people already have High blood pressure because of their stupid acts of invading their privacy and sending messages with pictures to all contacts on their phone and still want the defaulters to pay back again after all the embrassment and the workers will send message with different number giving all the contacts they send message a certain Account number to pay money into claiming is the company account number,and other agents will call again saying you have not paid after showing them proof still they will tell you they are not one of them and their company don’t send message or picture to their contacts… So how did they get the information of the customer and when you want to reach those people back they have already blocked you from gaining access to them to reply back…. They Deduct money from account even when is not the Due date without your consent, Alot of people are almost dying because of all their threats…. Federal Government and Babatunde Irukera should Shut down all the loan apps now… These people are scams and the agents working for them….The Loan apps are still sending messages and picture till now… They said No one even the Government can not stop them… Babatunde Irukera Should put a stop to Online Loan Apps Today let them all be Scrapped… The citizens needs their Lives back and their Health…. Sokolaloan, Go cash, Coco Loan, Sparkle Loan, True Naira, Cashlion, Cashsea, I money, kaskash, Tingo loan, Lcredit, Easy credit, Africash, Deeploan, Flash cash, Unicredit, Max Naira, Xcredit, Nkash, NCredit… Infact All the Loan Apps should be Shut down totally from Today.
I pray they ban them , cause they re killing us small small.. lcredit worst among dem all..
I really appreciate the effort of the commission for this, cos this loan apps are something else, if not for the economy of the country what ll make someone want to be embarrassed this way they should be shot down forever.
The daily overdue charges are outrageous.. They add 1000 naira every day and you expect the lenders to pay it all. They should do something about them. Shut them down before they shut the masses down.
Fair_money should be banned forever
their interest rate is very high They are killing people with worries of inability to pay back on the set time they will publish you and disgrace you to all your phone contact
I think all d numbers sending reformatory messages should b traced n arrested they re claiming d force cannot do anything to them.for me if u do that to me I won’t pay a dime back.once I borrowed money from hicash n they sent deformatory messages to my contacts n I lost a cooking contract of over 600k.n they boasted I can’t do anything to them..it’s very bad d govt should do something serious about this pls
Government should shutdown those loan app the threat from them is too much, posting names on social media and invading into people’s privacy, it’s unfair there interest and service charges is too much, Soko loan, fast loan, star loan, Lcredit, and many more should be banned. Someone here is thinking of committing suicide just because of the threat and the embarrassment he get from this so called loan apps.
My dear words failed me here. All i know is that those online Loan App are scammers. They are diabolic also. They will promise to give you a loan of 30k but once click na 19,500 you go get to pay back 27k in 7 days.. How? Before you know it 7 days don reach and you will live with no option than to take from another loan app to pay and still owe the current loan app because that’s the idea they will even give you and you will be stucked. Once you pick their calls e don finish be that as if they put something in their lips to speak with you. Before you realize yourself you don default and once default just for a day you don enter be that. The kind of messages those fraudsters will send to your contacts plus your pictures all over social media and using your pic as obituary when still alive, infact to live no go hungry you again, to commit suicide will be your next option. Many Nigerians have died because of these so called loan apps. No be juju be that? Please and please the Federal Government should not waste time in shutting them down before they shut the masses down. LCredit, Ease moni, Cashlion, Oxloan, Kashkash, Okash, Easy Credit, GoCash, Chacha Loan, Naira Land, NCredit, Nkash, Sparkle Naira, 9credit, LinkCredit, xCredit, Tloan, xcash, xcrosscash, Hi credit, Okay Naira, Cashrain, Unique Money, Cashloan and lots more. More grace Mr Irukera, we appreciate you. May God give you more wisdom sir.
I thank the government for helping me,because this people almost make me go crazy,if I pay them there money,they will refuse to to acknowledge the payment,I will call n send text messages to them,but they will not n they will start adding interest on it,to become another loan,they use my account to removed money from my bank,since they had my atm card number,living me with loans .His only God that will judge them for me
Pls ohhh Aim loan is one of the devil they will borrow you 42k and ask you to pay 65k in 7 days where on earth will you get that money in 7days pls government help us out
Someone just killed herself because of this people… government should please ban them…they are evil