At least seven digital loan companies operating in Ikeja, Lagos, were raided in a joint operation with the Federal Competition and Consumer Protection Commission (FCCPC) on Friday for a “possible violation” of consumer rights.

The operation led by the commission’s boss, Babatunde Irukera, was in response to several complaints of malpractices on the part of the lenders.

A PREMIUM TIMES investigation, last December, revealed how these 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.

The companies – GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni – owned by Blue Ridge operate on the third floor of a four-storey building in the area.

During the operation, Mr Irukera told the over 800 employees of the purpose of the raid and their rights.

Soko Loan, another lending company, operates in another location in the area with over 150 employees and some of its employees protested the seizure of their equipment.

The operations were carried out by the FCCPC, Independent Corrupt Practices and Other Related Offences Commission (ICPC), National Information Technology Development Agency (NITDA), and the Nigeria Police Force (NPF).

Addressing the press, Mr Irukere said the loan companies rose to prominence due to the economic impact of the COVID-19 lockdown.

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“Because people were on lockdown due to the pandemic, people started needing small easy loans which is understandable.

“But over a period of time, people started complaining about the malpractices of the lenders so we started tracking
Sometime towards the end of last year, after gathering quite a lot of information, we started working with some other key agencies like the EFCC, ICPC, National Human Right Commission, CBN, NCC. And FCCPC led the meeting where we all agreed that there would be a joint effort to look into these businesses.”

Mr Irukera said the cause of concern was the naming and shaming of borrowers and violation of their privacy with respect to how the loans are recovered.

“Secondly the interest factor 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,” he said.

Investigation
Mr Irukera said it was difficult tracking the loan companies, adding that it took them several months because some of the lenders moved from one place to the other.

He said that some of the officials visited the companies daily to be sure of their location.


“We found out that most of these companies operate from the same place. We also found out that many of them are actually operated by the same person,” he said.

Loan companies with over 800 staff raided by the FCCPC
They are not Nigerian companies, they don’t have addresses in Nigeria and they are not registered in Nigeria with the Corporate Affairs Commission and they do not have any license to do their businesses.



“Essentially what they have is an App, and so we started gathering more information, we engaged the public and people who have been their victims gave us more information.”

Mr Irukera said that they presented their findings to the court, and got a warrant to “proceed with an investigation into a search and seizure. And sometime last month, a court issued a warrant and between then and now we were preparing a sting operation which is what you are seeing here today because we want to be sure we are hitting at the place where we could get many of them.”



https://www.premiumtimesng.com/news/headlines/516749-nigerias-consumer-protection-agency-cracks-down-on-digital-loan-firms.html

I pray to God not to ever let me have issues that will push me to going for a loan.....


I can't imagine seeking for a loan of 500k and will have to pay back 800k... Why?

This is CBN doing ...


This why youths go into quick money and rituals.

The repayment is always an issue because I collected 500k which I can easily pay back 600k, but 800k?

Odikwa trenches....

yanabasee:
I pray to God not to ever let me have issues that will push me to going for a loan.....


I can't imagine seeking for a loan of 500k and will have to pay back 800k... Why?

This is CBN doing ...


This why youths go into quick money and rituals.

The repayment is always an issue because I collected 500k which I can easily pay back 600k, but 800k?

Odikwa trenches....

The economy is biting hard

People have to survive