On Friday, March 11, the Federal Competition and Consumer Protection Commission (FCCPC) raided at least seven digital loan companies operating in Lagos over “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.

Babatunde Irukera, the head of the FCCPC said some digital money lenders were shut down over violation of consumers' rights. Photo credit: @fccpcnigeria Source: Twitter

Legit.ng gathers that the lending companies offer short-term loans to help subscribers meet urgent needs.

However, they resort to unprofessional measures of harassment, cyberbullying, and breach of data privacy of their customers who may have defaulted in loan repayment.

Here's the list of the affected loan companies:


1. GoCash

GoCash is listed under Finance on Google Play Store. It loans Nigerians up to N300,000, and charges from 20% to 30% service interest, according to the information available on the Andriod apps store.


2. OKash

OKash is owned by Blue Ridge Microfinance Bank Limited. The company said on its profile on Play Store that its loan amount ranges from NGN 3,000 to NGN 500,000.

Okash added that its interest rate is calculated on a daily basis and has an Annual Percentage Rate(APR) ranging from 36.5% to 360%.

3. EasyCredit

EasyCredit says its lending amount ranges between 3,000 NGN and 100,000 NGN and has the Maximum Annual Percentage Rate(APR) of 40%.

4. Kashkash

KashKash says its loan ranges from ₦3,000 to ₦200,000 while its annual percentage rate(APR) ranges from 36.5% to 300%.

5. Speedy Choice

Legit.ng cannot find any loan app with the name Speedy Choice on the Google Playstore. The loan app that shows when the name Speedy Choice is typed is Speedy loan.

Legit.ng cannot confirm if the two are the same.

Speedy loan’s feature is similar to others. Loan amount ranges from ₦3,000 to ₦150,000 and those eligible for the loans are Nigerian residents (20-55 years old) with monthly income source.

No office address was provided.

6. Easy Moni

Easy Moni in its profile on Google Playstore claims its "loan-products approved by Microfinance Banking Business registered with CBN and communicated to users during online loan application."

Its loans amounts range from NGN1,500 to NGN80,000 with the Annual Percentage Rate (APR) of 48%.

7. Sokoloan]

Sokoloan says its own interest ranges from 4.5% to 34% and collects no collateral.

Interested clients can get loans ranging from ₦5,000 to ₦100,000 with terms from 91 to 180 days.


Meanwhile, a report by Premium Times states that six of the seven listed companies, GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni, were owned by Blue Ridge Microfinance Bank Limited.

Why FG shut down the loan apps

Babatunde Irukera, the head of the Federal Competition and Consumer Protection Commission (FCCPC) said the reason for the shutdown was the naming and shaming of borrowers and violation of their privacy with respect to how the loans are recovered.

He added:

“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."

How we will deal with digital money lending companies - Irukera

Irukera said lives and reputation of vulnerable Nigerians are threatened or damage by oppressive loan terms & outrageous collection practices.

He vowed that the FCCPC "will hit them in their offices, cloud storage, banks & App Stores", adding that ethical lending is a must.

Giving an update in a statement on Monday, March 14, Irukera said Google LLC and Apple Inc have been directed to take down the apps, among other measures taken by his commission alongside other government agencies.

However, checks by Legit.ng indicates that the apps are still active on Google Play Store at the time of filing this report.

Many Nigerians have also commented that the lending firms have not stopped the harassment despite the FCCPC's action.

Jersey0107, @ajaneakan, said:

"Lcredit, sokoloan these ones are still sending messages threatening victims, I've seen a lot today."

Hirofunshi, @Hirofunshi, said:

"LCredit is the worst of them all. Infact worse than Sokoloan. Special interest should be given to them @lcreditNg."

Royalty favour, @favourroyalty1, said:

"They are still calling and sending threat message even as this operation is going on."

How online loan sharks raided by FG resumed work 6 hours later

Meanwhile, insider information obtained exclusively by Legit.ng says that the digital money lenders raided by the Task Force went back to work six hours later.

According to a source who craved anonymity because she does not want to risk her life and job, immediately the raid happened the management of two of two loan apps, Kash Kash and Okash ‘settled’ those who came to do the raid and started work six hours later.

She said:

“We went back to work immediately. I work in customer service and among those calling debtors and defaulters. I think the management settled those who came to do the raid and allowed us to resume operations.

"As I am talking to you, I have called about 12 people today. The job does not even require onsite activity. We work remotely sometimes and report to the office a few days a week."

Source: Legit.ng

https://www.legit.ng/business-economy/money/1460211-online-loan-apps-full-list-profiles-7-digital-money-lenders-shut-down-by-fg/

What will happen to those owing these companies as at the time of this ban?

How will the companies recover their funds?

MyExpression:
What will happen to those owing these companies as at the time of this ban?

How will the companies recover their funds?

If the loan company had done right thing it wouldn't have lead to this, these people would give loan of 10,000 and ask you to pay 7,740 as interest after seven days. Now what kind of business will you do with such money to get such profit?

Now two days to the due date they start calling you to pay and collect another loan, and when you fail to pay on due date, they would call your office, in-law, wife/husband, parents and your friends telling them not to ever trust you that you ran away with their money, and when you finally pay they wouldn't go back to inform those people that you have paid.

Those people has more than one loan companies, defrauding Nigerians with different methods and as well damaging the image of their customers.

In the first place, the proliferation of these loan companies came as a result of bad economy. Under the watch of the government, so many dubious financial scheme prospered in the country. We can't easily forget the MMM era. We hope the regulation will protect both the lenders and the borrowers.

We should always try to read terms and conditions...
Opay gave me a loan, never knew I will pay back 7600 daily..
I ended up using their loan to pay them and still owing..
The aim of the loan was defeated cos I didn't read their terms and conditions...
But on the norms, how can you give out loan and expect daily repayment?

Irupetepete:
We should always try to read terms and conditions...
Opay gave me a loan, never knew I will pay back 7600 daily..
I ended up using their loan to pay them and still owing..
The aim of the loan was defeated cos I didn't read their terms and conditions...
But on the norms, how can you give out loan and expect daily repayment?

Opay same as Okash?

MyExpression:
On Friday, March 11, the Federal Competition and Consumer Protection Commission (FCCPC) raided at least seven digital loan companies operating in Lagos over “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.

Babatunde Irukera, the head of the FCCPC said some digital money lenders were shut down over violation of consumers' rights. Photo credit: @fccpcnigeria Source: Twitter

Legit.ng gathers that the lending companies offer short-term loans to help subscribers meet urgent needs.

However, they resort to unprofessional measures of harassment, cyberbullying, and breach of data privacy of their customers who may have defaulted in loan repayment.

Here's the list of the affected loan companies:


1. GoCash

GoCash is listed under Finance on Google Play Store. It loans Nigerians up to N300,000, and charges from 20% to 30% service interest, according to the information available on the Andriod apps store.


2. OKash

OKash is owned by Blue Ridge Microfinance Bank Limited. The company said on its profile on Play Store that its loan amount ranges from NGN 3,000 to NGN 500,000.

Okash added that its interest rate is calculated on a daily basis and has an Annual Percentage Rate(APR) ranging from 36.5% to 360%.

3. EasyCredit

EasyCredit says its lending amount ranges between 3,000 NGN and 100,000 NGN and has the Maximum Annual Percentage Rate(APR) of 40%.

4. Kashkash

KashKash says its loan ranges from ₦3,000 to ₦200,000 while its annual percentage rate(APR) ranges from 36.5% to 300%.

5. Speedy Choice

Legit.ng cannot find any loan app with the name Speedy Choice on the Google Playstore. The loan app that shows when the name Speedy Choice is typed is Speedy loan.

Legit.ng cannot confirm if the two are the same.

Speedy loan’s feature is similar to others. Loan amount ranges from ₦3,000 to ₦150,000 and those eligible for the loans are Nigerian residents (20-55 years old) with monthly income source.

No office address was provided.

6. Easy Moni

Easy Moni in its profile on Google Playstore claims its "loan-products approved by Microfinance Banking Business registered with CBN and communicated to users during online loan application."

Its loans amounts range from NGN1,500 to NGN80,000 with the Annual Percentage Rate (APR) of 48%.

7. Sokoloan]

Sokoloan says its own interest ranges from 4.5% to 34% and collects no collateral.

Interested clients can get loans ranging from ₦5,000 to ₦100,000 with terms from 91 to 180 days.


Meanwhile, a report by Premium Times states that six of the seven listed companies, GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni, were owned by Blue Ridge Microfinance Bank Limited.

Why FG shut down the loan apps

Babatunde Irukera, the head of the Federal Competition and Consumer Protection Commission (FCCPC) said the reason for the shutdown was the naming and shaming of borrowers and violation of their privacy with respect to how the loans are recovered.

He added:

“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."

How we will deal with digital money lending companies - Irukera

Irukera said lives and reputation of vulnerable Nigerians are threatened or damage by oppressive loan terms & outrageous collection practices.

He vowed that the FCCPC "will hit them in their offices, cloud storage, banks & App Stores", adding that ethical lending is a must.

Giving an update in a statement on Monday, March 14, Irukera said Google LLC and Apple Inc have been directed to take down the apps, among other measures taken by his commission alongside other government agencies.

However, checks by Legit.ng indicates that the apps are still active on Google Play Store at the time of filing this report.

Many Nigerians have also commented that the lending firms have not stopped the harassment despite the FCCPC's action.

Jersey0107, @ajaneakan, said:

"Lcredit, sokoloan these ones are still sending messages threatening victims, I've seen a lot today."

Hirofunshi, @Hirofunshi, said:

"LCredit is the worst of them all. Infact worse than Sokoloan. Special interest should be given to them @lcreditNg."

Royalty favour, @favourroyalty1, said:

"They are still calling and sending threat message even as this operation is going on."

How online loan sharks raided by FG resumed work 6 hours later

Meanwhile, insider information obtained exclusively by Legit.ng says that the digital money lenders raided by the Task Force went back to work six hours later.

According to a source who craved anonymity because she does not want to risk her life and job, immediately the raid happened the management of two of two loan apps, Kash Kash and Okash ‘settled’ those who came to do the raid and started work six hours later.

She said:

“We went back to work immediately. I work in customer service and among those calling debtors and defaulters. I think the management settled those who came to do the raid and allowed us to resume operations.

"As I am talking to you, I have called about 12 people today. The job does not even require onsite activity. We work remotely sometimes and report to the office a few days a week."

Source: Legit.ng

https://www.legit.ng/business-economy/money/1460211-online-loan-apps-full-list-profiles-7-digital-money-lenders-shut-down-by-fg/

For me, these loan company operations should cease hence fourth. They are just bunch of thieves and complete nuisance to the country.

If they must continue , they must be trimmed, scrutinized and regulated fully by the CBN to provide professional financial services.

Rickmann:



For me, these loan company operations should cease hence fourth. They are just bunch of thieves and complete nuisance to the country.

If they must continue , they must be trimmed, scrutinized and regulated fully by the CBN to provide professional financial services.

On the contrary, I think the loan companies have been really helpful. Despite the high interest rate, which is definitely optional, they have really come thru for some of us...especially the working class.

However, this modus of loan recovery is the major problem.

Even if people default, there should be a professional way to guarantee a loan, aside naming and shaming.

MyExpression:


On the contrary, I think the loan companies have been really helpful. Despite the high interest rate, which is definitely optional, they have really come thru for some of us...especially the working class.

However, this modus of loan recovery is the major problem.

Even if people default, there should be a professional way to guarantee a loan, aside naming and shaming.

Exactly my point..
There's absolutely no point in dishing out public disgrace to Nigerians.

ForestHill:
Opay same as Okash?

they own okash