*As FCCPC develops framework, guidelines for digital lending

By Yinka Kolawole


The Federal Competition and Consumers Protection Commission, FCCPC, has directed payment systems operators, PSOs, such as Flutterwave, Opay, Paystack and Monify, as well as telecommunication companies, including Mobile Network Operators, MNOs, in Nigeria to stop providing support that enables the operations of illegal digital money lenders, also known as money sharks, in Nigeria.

Executive Vice Chairman/Chief Executive Officer, FCCPC, Babatunde Irukera, who disclosed this yesterday, in Lagos, when the Commission conducted enforcement actions against a loan shark known as Soko Lending Limited, added that FCCPC has secured orders to disable or diminish violators’ ability to circumvent regulatory efforts to protect citizens.

He also announced that a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending has been developed and adopted by the inter-agency Joint Regulatory and Enforcement Task Force as interim step to establishing a clear regulatory framework for the sector.

His words: “Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names covering a significant share of the digital/online lending market, and one of the most prolific actors in violating consumer privacy, fair lending terms and ethical loan repayment/recovery practices.”

He recalled that the Commission had previously carried out a similar enforcement action which reduced exploitative practices in the industry, noting, however, that some of the lenders have devised methods to circumvent account freezing and app suspension orders.

Irukera further stated: “The Commission has also 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.

“Particularly, the Commission has ordered all operating payment systems including Flutterwave, Opay, Paystack and Monify to immediately cease and desist providing payment or transaction services to lenders under investigation or not otherwise operating with applicable regulatory approvals.

“FCCPC has also ordered telecommunication/ technology companies (including Mobile Network Operators (MNOs)) to cease and desist providing server/hosting, or other key services such as connectivity to disclosed or known lenders who are targets/subjects of investigation or otherwise operating without regulatory approval.

“The inter-agency Joint Regulatory and Enforcement Task Force has developed and mutually adopted a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 as the first and interim step to establishing a clear regulatory framework.’’

https://www.vanguardngr.com/2022/08/fg-blocks-mobile-payment-telecoms-network-access-to-online-loan-firms/

M

Most of these loan sharks are criminals. The government needs to look into their activities properly. Imagine one of the so-called loan sharks worker called me yesterday, complaining about one of my contacts that borrowed money.

I called the contact later to get more info. It turned out that he borrowed 15K to pay 23k in one week. Just imagine the rip-off.

On top of that, he asked for one week extension, but was denied.

This is not how loan firms operate in other countries. Their policies, interest rates, and debt recovery methods are something else.

Nna Ehen ... atleast all those their harrassment calls go reduce, person go use my number as contact na me the come the disturb ... i don block taya.

Good news

Our loan brother would be proud...

inside life.

what happens to their outstanding debt cos i owe 2 of them

How will they recover the money from their debtors?


FG and their useless policies....


The loan companies aren't a bad option. But the percentage given is the problem.

How can you loan company 300k and will have to pay back 500k.. And when you can't pay it off... they begin to add to it... Why?

Anyway, I should've collected a loan before they blocked them.

A guys phone had over 50 loan apps who he actually collected loan from and refused to pay, after he got tired of the phone and the blackmailing messages being sent to his contact, he changed the phone and got a new sim

Ewwee . This one sweet me. First tym ever to wake up to better news in this Country. That Soko Loan is the worst lending platform ever. The other day, I read they created the obituary poster of one of their patrons...just because he missed his repayment date by a few days. O wrong na.

JASONjnr:
How will they recover the money from their debtors?


FG and their useless policies....


The loan companies aren't a bad option. But the percentage given is the problem.

How can you loan company 300k and will have to pay back 500k.. And when you can't pay it off... they begin to add to it... Why?

Anyway, I should've collected a loan before they blocked them.

They should go thru proper channel and stop giving loan to every Tom,dick and Harry, anyone can steal ur phone and get a loan from them, the worst part is once u allow them access to ur contact, they'll start harassing everyone on the contact list

My dad told me about this in the begining of last month. Na wa oooo

sweet news to my ears..
i'm no more shocked..
my sig.

Paystack is my favourite in terms of online payment

,

Really?

I don't blame these loan apps for their loan recovery tactics cos Nigerian debtors can be so annoying.

Personally for me if you like beg me for a loan with tears of blood in your eyes, I no go gree give you

Just to make life harder

That still doesn’t change the fact that there are 49million kangaroos in Australia and 3.5million people in Uruguay which means if the kangaroos were to invade Uruguay each person will have to fight 14 kangaroos

you say

what happens to their outstanding debt cos i owe 2 of them[/quote]

Good.

All these mad loan shark people don disgrace some people generation

Bubu blocking only means of survival of employed youths. Making life more difficult for us. I have friends who are affected by ASUU strike that borrowed from some of these loan sharks as a means of survival.

JASONjnr:
How will they recover the money from their debtors?


FG and their useless policies....


The loan companies aren't a bad option. But the percentage given is the problem.

How can you loan company 300k and will have to pay back 500k.. And when you can't pay it off... they begin to add to it... Why?

Anyway, I should've collected a loan before they blocked them.

The problem I actually have with them. A loan of 7k has reached 89k and still counting just cos a friend didn't pay on time. How will a person that can't pay 7k pay 89k?

Sad news to borrowers. Sometimes those Loan sharks dey really help

Loan sharks started because the institutions established to give loans are not functioning. You have been banking with XYZ bank for the past 10years yet they can't give you a loan of 100k. You will fill forms, write application letter, visit the bank and yet they will tell you they can't give you loan of 100k even when your yearly volume is 2M except you have a landed property as security.

Do you have a salary account with us? Meaning only salary account owners can access loans easier. Do you know the percentage of salary account owners in Nigeria to the general populace ?

It is fraud if you ask me, that the banks collect monies from CBN on the ground that they want to give out loans to Nigerians only to use the money for their branch opening and personal business. CBN too is terrible, they can't enforce loan policies on the banks and ensure it gets to the citizens.

If bank loans are accessible to Nigerians, No one will use these loan shark with their ridiculous interest rate.

This means FG is fighting the wrong fight, no need for all these, Nigerians need loan, they can even use the loan sharks for these services if the banks are failing, just regulate their interest rate and how they embarrass defaulters.

Lies, same loan apps that want to finish me with 'you have a loan offer' on WhatsApp.
How can you borrow me 50k and expect me to pay 70k within a week?
Even the most astute business man can't make such profits.

It only means one thing, they know people won't be able to pay back, so if they don't the money keeps increasing, before you know it, in two weeks you would have been owing 100k on top 50k loan and a lot of blackmail.

That's the biggest and most fraudulent rip off, these loan apps are scammers and a cheat shouldn't complain if someone beats him to his own own game!

Be like say Sokoloan recently identify the Minister as a wanted criminal on the run with company funds

Hello, my name is ... my phone number is 86, my BVN is 0, my family is dead, I need your help now, please call me back quickly, I need you to come Help me dig graves for my family, now they are all rotten and smelly, God told me yesterday to give them the grace to go to hell, so please come and help me, I still owe CashMap money not paid , please help me repay this loan, if you refuse to help me, then your whole family will be sent to hell by God.

That's the crazy message they sent me about someone on my contact

It's going down

Okay na. Christmas came early for those people still owing.


All I can tell anyone owing them is that don't pay.

Nothing go happen.

Those people who say if you can't pay, why borrow, remember that this guy's are operating illegally and fraudulently.

So it's now a case of cunny man die cunny man bury am.

OSUigboFlatHead:


Good.

All these mad loan shark people don disgrace some people generation

Bubu is doing you a huge favor, i admit loans should be easily accessible but these loan sharks are rip off