- Information reaching Legit say that many of loan sharks raided by the Nigerian government last week went back to work few hour later
- An employee of one of the companies said on the very day of the raid, she called up to 12 defaulters indicating that they carried on business as usual
- Many of the loan apps use unethical practices like criminal defamation and character defamation to recover their debts
Insider information obtained exclusively by Legit says that lending apps, otherwise known as loan sharks went back to work six hours later.
According to the source who craved anonymity because she does not want to risk her life and job, immediately the raid happened the management of two of the loan apps, Kash Kash and Okash ‘settled’ those who came to do the raid and started work six hours later.
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“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,"
Ijeoma Nwamma, one of those who borrowed money from Okash told our reporter that at the moment she was reading that there was a raid, she got a call from them telling her to pay up or face consequences.
“They were threatening fire and hell. They told me that they will report me to the police and Credit Bureau and so on. I have defaulted only for two days and I was getting threats to my life from them.”
Why the raid happened
The Federal Competition Consumer Protection Commission raided some illegal financial institutions operating on Opebi Road, Ikeja, Lagos last week.
This was done in collaboration with the Independent Corrupt Practices and other Related Offences Commission, the Nigerian Police Force among others.
The operation led by the commission’s boss, Babatunde Irukera, was in response to several complaints of malpractices on the part of the lenders.
Most of the apps operated under the radar to avoid government detection, employ unwholesome practices in the recovery of debts.
Most of them are not registered with relevant government agencies.
Loan applicants have reported vicious means employed by the loan sharks with many going as far as designing obituaries of defaulters and telling their contacts that they have an incurable disease like HIV and others and should be avoided.
Legit.ng has reported that the federal government has finally commenced the regulation of Nigeria's online loan companies by raiding some of the loan sharks.
Online loan sharks in trouble as FG begins massive crackdown, raids GoCash, Okash, EasyCredit among others
This raid was carried out by the Federal Competition Consumer Protection Commission, in collaboration with the Independent Corrupt Practices and other Related Offences Commission, National Information Technology Development Agency, and the Nigerian Police Force.
The loan sharks are reportedly guilty of the violation of consumer rights.