Online Loan Apps: FG Gives Crucial Update, Lists Actions Taken Against Digital Money Lenders So Far

Online Loan Apps: FG Gives Crucial Update, Lists Actions Taken Against Digital Money Lenders So Far

  • The inter-agency Joint Regulatory and Enforcement Task Force (JRETF) has given an account of its operations against digital money lenders
  • Babatunde Irukera, CEO of the FCCPC, said orders have served on financial institutions to freeze or suspend operations of certain accounts used by some indicted digital money lenders
  • The FCCPC also said the Google LLC and Apple Inc have been ordered to take down the apps of the affected digital money lenders

Lagos, Nigeria - The inter-agency Joint Regulatory and Enforcement Task Force (JRETF) has listed some of the actions it has taken against digital money lenders in the country.

Legit.ng recalls that the JRETF which consists of the FCCPC, NITDA and ICPC had on Friday, March 11, raided the offices of some digital money lenders in Lagos.

Online Loan Apps: FG Lists Actions Taken Against Digital Money Lenders So Far
The federal government asked Google and Apple to take down the apps of some digital money lenders. Photo credit: @fccpcnigeria
Source: Twitter

In line with a court order, the Task Force executed a search and seizure order on some of the digital money lenders.

In a statement released on Monday, March 14, the CEO of the Federal Competition and Consumer Protection Commission, Babatunde Irukera, gave an update regarding the outcome of the previous raid.

PAY ATTENTION: Install our latest app for Android, read best news on Nigeria’s #1 news app

1. Orders to freeze certain accounts and suspend operations

The FCCPC said it has served orders on multiple financial institutions freezing or suspending operations of certain accounts which some of the money lenders have used to conduct implicated business or transactions that are subject of investigation.

2. Direct Google LLC and Apple Inc to take down some apps

Further, the FCCPC said it has ordered Google LLC (Play Store) and Apple Inc. (App Store) to take down the apps of some digital money lenders found wanting of inappropriate conduct and violation of the rights of consumers.

The commission also prohibited Google LLC and Apple Inc from accepting new applications (mobile apps) for the same purpose without regulatory assessment and approval.

3. Warns other digital money lenders against bad practice

The FCCPC also cautioned other digital money lenders to cease and desist the interest compounding and loan repayment/collection practices that are currently being investigated.

The commission said any igital money lender that continues with any of the bad conducts will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).

4. Message to Nigerians

The Task Force urged Nigerians to avail it with any useful information that may assist its investigation which it said is still active and ongoing.

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

Online view pixel