The Federal Government of Nigeria has placed an immediate ban on some money lending platforms, also known as ‘Loan Apps’ and has futher placed an immediate removal from Google play Store.
It was also reported that, the federal government update the list of registered and approved Digital Money Lenders (DMLs). The federal government has ad advised Nigerians to patronize Loan Apps that are in the approval on list.
According to the Federal Competition and Consumer Protection Commission (FCCPC) in a statement released, revealed that the blacklisted Loan Apps were not duly registered with the commission.
The statement which was signed by FCCPC Executive Vice Chairman/ Chief Executive Officer, Babatunde Irukera, reads; “The violating DMLs have resorted to the use of Android Package Kits (APK) file formats. The illegal DMLs provide links to consumers to visit unregistered websites using their Android devices/phones. In the course of that interaction, consumers’ private information that is otherwise protected and prohibited from access or download by DMLs or their apps is accessed and downloaded.”
“This conduct is prohibited by sundry laws, particularly relevant data privacy protection instruments, and more specifically, the Limited Interim Regulatory/Registration Framework & Guidelines for Digital Lending 2020 of the Commission.” “In the course of the Commission’s continuing investigation and tracking of these illegally operating DMLs, the Commission has discovered duplicity by at least two otherwise legally registered DMLs on the Commission’s approval list.”
“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.”
“The nature of the duplicity is that the DMLs having been approved and placed on the approved list and Playstore, as well as cleared for services by other financial services/institutions, as an alternate channel, and method of engaging in prohibited conduct, also engaged in the use of APK to attract borrowers to a process and practice that is illegal and unregulated.” “The companies or apps so far identified, and for which there is supporting evidence of this malfeasance are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited. They are the owners of “Getloan” and “Camel loan” respectively, and occupy Nos. 1 and 65 on the Approved List of the Commission, which is available on the Commission’s website.”
“The Commission has now permanently delisted Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited, along with their respective apps – “Getloan” and “Camelloan.”
“In addition, the Commission has entered an Order to Google Playstore and other payment and financial service providers, permanently prohibiting the provision of any services associated with digital lending to Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited.”