The Federal Competition and Consumer Protection Commission (FCCPC) has barred all financial technology companies (FinTechs) from providing payment or transaction services to online money lenders under its investigation.
The identified FinTechs such as Flutterwave, Opay, Paystack and Monify were said to be operating payment systems and providing services to such online lenders under its investigation or not operating with applicable regulatory approvals.
This is coming several months after the commission had ordered Google and Apple to enforce the withdrawal of these money lending applications from their stores where evidence of inappropriate conduct or use of the application in violation of the rights of consumers has been established.
This was made known by the Executive Chairman of FCCPC, Mr Babatunde Irukera, during a chat with journalists while on an enforcement exercise on some of the digital money lenders on Thursday in Lagos.
Irukera said the commission also ordered telecommunication and technology companies which include Mobile Network Operators (MNOs) to stop providing server, hosting or other key services such as connectivity to such disclosed or known lenders.
What the FCCPC Executive Vice Chairman is saying
Irukera said, “The information available to the commission demonstrates that Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names.
“It is covering a significant share of the digital or online lending market, and one of the most prolific actors in violating consumer privacy, fair lending terms and ethical loan repayment/recovery practices.
“Prior to this operation, the commission had previously, on March 11, 2022 carried out a similar enforcement action with respect to multiple lenders; which action and continuing investigation has reduced previously high and escalating unethical, obnoxious and unscrupulously exploitative practices in the industry.’’
The FCCPC boss noted that some of these online lenders who had been subject of investigation had devised methods to leverage on technology and other financial services alternatives to circumvent account freezing and app suspension Orders.
He said, “With the operations today, the commission expects appreciable additional reduction in these unacceptable practices.
“The commission has also today entered further Orders that will disable or diminish violators’ ability to devise circumvention efforts or alternative mechanisms to circumvent the objective of the investigation and protection of citizens.’’
Going further, he said the Order requires permission to proceed in digital lending and provides a limited moratorium period for existing businesses to comply in order to continue in digital lending.
Irukera added, “The guidelines also mandate different service providers in the relevant ecosystem such as banks, access/download platforms or stores, technology providers and payment systems to require regulatory approval before providing services.
“The commission expresses its gratitude to victims and citizens who have provided information or contributed to the investigation; and welcomes the continuing engagement that provides the relevant information or intelligence through the already established and publicised channels.’’
In case you missed it
- Recall that on March 11, the Federal Government in a raid through its joint committee investigating rights violations and unfair practices shut down some illegal online money lending banks for not registering with the Corporate Affairs Commission (CAC) and engaging in activities against the rights of Nigerian consumers.
- These online banks charged interest rates that violate the ethics of how lending is done and were involved in naming and shaming which is a violation of people’s privacy with respect to how these lenders recover loans, among other violations
- The lending companies offer short-term loans to help subscribers meet urgent needs, but resort to unprofessional measures of harassment, cyberbullying, and breach of data privacy of their customers who may have defaulted in loan repayment.
- Some of the affected online money lending banks include; GoCash, Okash, EasyCredit, Kashkash, Speedy Choice and Easy Moni.
- FCCPC had earlier in April blamed Google for the inability to trace the owners of some defaulting online money lending banks over consumer rights violations and said that it may be working law enforcement in the United States, to get them come up with the information needed to get those behind the digital lenders.
Am so happy today as I come across this I have been looking for how can report link credit for harassment even after repayment of the said loan they keep on sending me insulting message like chronic debtor oke etc I have most of the message with me
Thank God,hv been looking on how to report,Aim loan,Add money,Easy cash,Deloan this people are Soo weekend,government need to close this Online bank
Good morning,i want to report gocash deloan easycash ilove naira snappy credit cash bus hi money credit9ja credit loans xcredit ecash loan, please government should do something about this people they are just sending my pictures to all my contacts that i am a thief because i collected loan i could not meet up with the repayment date, they have entered into my phone book sending all my contacts massage that’s while i came out with this cry now, everyone is looking at me that am a thief every day, it’s has lead to my office now my Job is not secure again please
I want to report gocash deloan easycash ilove naira snappy credit cash bus hi money credit9ja credit loans xcredit ecash loan please government should help us out of this loan people please because they are using this black mail people images online everywhere now i have lost my job because of this people
My money was deducted from my acct at midnight by SOKOLOAN despite the warming and.freezing of their acts.. l checked the app and.read that I v no loan pending and was offered 5000 loan but I uninstalled the app only.for them to still deduct the 138 I v remaining. Tried.to look for the app to install but no way even.on Google, it’s there nuy.cant be downloaded.
Thank God for this development, please help to investigate, docredit also and some Nigeria online loan to, like lcredit, and please tell them to stop calling people to take loan. I don’t know how they use to get people’s numbers
Deloan very useless app and wicked people and criminal government should be banned this app please they can defames people because of 1 naira