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FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights - Business - Nairaland

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FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by NwaEzefuNaMba(m): 5:17pm On Jun 01, 2022
The federal government, on Friday, raided the offices of “illegal” digital loan companies operating in Ikeja, Lagos over alleged consumer rights abuse.

The operation was led by the Federal Competition Consumer Protection Commission (FCCPC) in conjunction with the
Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Information Technology Development Agency(NITDA) and the Nigeria Police Force (NPF).

The affected companies are GoCash, OKash, EasyCredit, Kashkash, Speedy Choice, Easy Moni, and Sokoloan.

Speaking with journalists, Babatunde Irukera, FCCPC executive vice chairman, said the raid was in response to customers’ complaints of malpractices by the financial institutions.


He said customers had accused the financial institutions of violating their privacy in their debt recovery drive.

He said the agency had begun investigations into the allegations since 2020.

“This information started quite a while ago. Some time ago, when the country was on lockdown in 2020 due to the pandemic, we started seeing the rise in money lenders,” Irukera said.



Irukera at one of the “illegal” digital loan companies

“Because there was lockdown due to the pandemic, people needed small easy loan which is understandable. But over a period of time, people started complaining about the malpractices of the lenders, so we started tracking it.

“Towards the end of last year, we gathered quite a lot of information. We started working with some other key agencies and the FCCPC led the meeting where we all agreed there would be a joint effort to look into these businesses.”

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.

Irukera said the agency has been monitoring the activities of the firms for several months, adding that it was difficult to identify their operational base.

He said investigations revealed that the loan firms were neither Nigerian companies nor registered in the country.

“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,” the FCCPC boss said.

“They are not Nigerian companies, they don’t have an address in Nigeria and they are not registered in Nigeria with the Corporate Affairs Commission and they do not have any licence to do their business.”

Highlighting steps taken by the commission, Irukare said the FCCPC obtained a court warrant to proceed with a “search and seizure”.

He said the commission had written to global app companies, asking them to shut down the loan companies’ apps.

“In addition to what you are seeing here today, the FCCPC has also issued multiple orders today,” he explained.

“Two of them are going to vendors: Apple and Google stores where some of these apps are available. We have asked them to shut these companies’ apps down so that people will not be victimised anymore.

“Secondly, some of them (the orders) have gone to the banks, asking them to freeze the accounts used by these people.”

“I must add though that not all money lenders are operating illegally and that is why it has been taking time for us to track these people.

“It doesn’t mean that the people we are proceeding against today are the only ones, but these are where we have information now and we want to start with them.”

The FCCPC chief said the commission would restrain the business of those that are found wanting and freeze their accounts.

He advised the public not to do any business with them.

https://www.thecable.ng/sokoloan-okash-fg-cracks-down-on-digital-lenders-over-customer-privacy-violation/amp

16 Likes 5 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Strifes: 5:36pm On Jun 01, 2022
Good! Those guys need to be checkmated. The harm that they've done outweighs the good

97 Likes 9 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Dailymice: 5:37pm On Jun 01, 2022
Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Ancecoker(m): 5:37pm On Jun 01, 2022
angry
Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by OneKinGuy(m): 5:37pm On Jun 01, 2022
good

1 Like

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by MrMcJay(m): 5:37pm On Jun 01, 2022
Throwback news. Recovery is a big issue for these loan apps.

33 Likes

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by AutoReportNG: 5:37pm On Jun 01, 2022
Long over due

Here are ways to know if your Tinted Permit Is Fake Or Original, police are not smiling

https://autoreportng.com/2020/06/ways-to-check-if-car-tint-permit-is-fake-or-original.html

5 Likes

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by emmabest2000(m): 5:37pm On Jun 01, 2022
Clamping down on online money lenders behind protector grin

Jokers

17 Likes 3 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by SIMONEKPA7: 5:37pm On Jun 01, 2022
Relief to debtor's... Normally Nigerians don't like paying debt.
Why borrow when you can't pay.
Make I see who go de borrow nna urgent 2k

47 Likes 2 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Aiyeremi7(m): 5:37pm On Jun 01, 2022
Good for them!

3 Likes

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Mandate2023: 5:37pm On Jun 01, 2022
I for don borrow pass wetin I borrow sef grin

27 Likes 1 Share

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Gkay1(m): 5:37pm On Jun 01, 2022
Old news

8 Likes

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Tonymegabush1(m): 5:38pm On Jun 01, 2022
Funny county

1 Like

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by MasterRahl(m): 5:38pm On Jun 01, 2022
angry
Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by samtee37(m): 5:38pm On Jun 01, 2022
Learn to pay the money you borrowed

6 Likes 1 Share

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by jamalnation(m): 5:38pm On Jun 01, 2022
Nice 1
Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by FuckAllTheMODs: 5:38pm On Jun 01, 2022
Debtors will be happy now.

Tho they(online lenders) can be annoying with the way they disturb their debtor's contacts which is wrong, but people should learn to respect agreements and pay back their loans.

27 Likes 1 Share

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Kingxchange44: 5:38pm On Jun 01, 2022
Bh
Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Sixfiguresmart(m): 5:38pm On Jun 01, 2022
The first person to clamp down should be the man with the bullion van. A man who stole in bullion vans when not in power in daylight will loot in ships and trains.

If your friend pees in your couch rather than the WC when on a visit, you will never invite him again. How can we allow a man who has not brushed his teeth since he was convicted of drug peddling piss on our country with shaky hands? How can a thug who fights dirty be allowed to oversee reasonable and creative Nigerians out of the suffering in town?

Tinupoop escaped hospital admission where he was being treated to run for presidential slot. He cannot run in real life. Just 2 months ago he was aided by a walking stick.

This was how Abiola overpushed his ambition until the northerners returned us back to military regime.

11 Likes 1 Share

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Channah1(f): 5:38pm On Jun 01, 2022
They are springing into action for what?

Where were they when these loan companies were helping people during the pandemic?

If they had done something or come to the aid of people when they needed financial assistance, these loan companies wouldn't have thrived and no body would have minded them. But now they are harassing those who even offered to help and saved majority from dying of hunger that period.

Mumu action. Not like they have the interest of the people at heart. They are only after personal gains. Shior!

15 Likes 3 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Thewrath(m): 5:38pm On Jun 01, 2022
With the hardship in this country,Nigerians will regret if these loan companies go..

I admit,the loan companies are greedy,but it’s business.....The terms of the loan are stated clearly,once you decide to accept their conditions,I see no reason to complain....most Nigerians are are just serial defaulters,collecting loans with no payback plan,it’s wrong.

5 Likes 4 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by oluwaseunamos33(m): 5:39pm On Jun 01, 2022
Good move. I salute you osibanjo, I know it's your handwork

5 Likes

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Eberex(m): 5:39pm On Jun 01, 2022
Its about time.

Wonder why it took them this long to act on these loan sharks.
That's how they sent me a pic of my landlord saying he is a criminal in defrauding people bla bla bla.

23 Likes 1 Share

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by SIMONEKPA7: 5:40pm On Jun 01, 2022
Mandate2023:
I for don borrow pass wetin I borrow sef grin
Wickedness and later you will blame Buhari

3 Likes 2 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Promismike(m): 5:40pm On Jun 01, 2022
To be frank this loan companies are helpful just that some of them charge a very high interest rate.

20 Likes 2 Shares

Re: FG Clamps Down On Online Money Lenders Over Breach Of Customer's Rights by Zidane199(m): 5:40pm On Jun 01, 2022
Make I run borrow money before they shut them down.

8 Likes 1 Share

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