FG Clampdown On Loan Applications

The Federal Government, through the Federal Competition and Consumer Protection Commission, has announced that it will publish a list of illegal (unregistered) digital lending apps operating in Nigeria. He also said that he will remove two legal (registered) lending apps from Google Play Store for harassing Nigerians.

According to the FCCPC on Thursday, it had added digital money lenders who refused or failed to register according to its guidelines to its watchlist for strict monitoring and necessary action.

In a statement signed by the Executive Vice Chairman/ Chief Executive Officer, Babatunde Irukera, the FCCPC said, “The commission has also placed digital money lenders that have refused or failed to register under the guidelines on its watchlist for strict surveillance and necessary action.

“The list of those digital money lenders will be made available on the commission’s website.

“The Commission will continue to scrutinise listed DMLs and periodically update the list to ensure only businesses that consistently and completely comply with the spirit and intention of the regulatory framework are allowed to do business legally in Nigeria.”

It advised Nigerians to exercise restraint and discretion in selecting digital money lenders and specifically, recommended that consumers only patronise digital lenders on its approved list to avoid falling victim to illegal and prohibited lending and recovery practices.

Commenting on the permanently delisted digital lenders, the FCCPC listed them as Sycamore Integrated Solutions Limited and Orange Loan, and Purple Credit Limited, along with their respective apps — ‘Getloan’ and ‘Camelloan.’

It stated that it came to this decision after investigating the apps.

The commission said; the commission's ongoing investigation and tracking of these illegally operating digital money lenders, the commission has uncovered the duplicity of at least two otherwise legally registered digital money lenders on the commission's approval list. 

He noted that the companies had also engaged in using the APK to lure borrowers into a process and practice that is illegal and unregulated. About 180 loan applications have been registered (partially or fully) and approved, by the FCCPC, to operate in Nigeria.