Breaking: Many Loan Companies in Nigeria Are Illegal, FG Says, Angry About Privacy Abuse

• The Nigerian government has insisted that many loan companies are illegal because they are not registered
• These loan companies are known for their exorbitant interest rates, privacy abuse and blatant invasion of privacy
• Some of the companies involves in these illegal acts include NowCash, Moniloanplus, 9credit, Monicash among others

The federal government has revealed that many lending companies in Nigeria are not registered with appropriate authorities and are carrying out their businesses illegally.

Recall that many Nigerians have complained bitterly about 'terrible' practices by these companies who blatantly lie against their defaulting customers while invading their privacies.

In a statement made available on Facebook, the FG through the Federal Competition & Consumer Protection Commission (FCCPC) revealed that many of these loan companies are not registered.

The statement read in part:

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"Initial inquiries demonstrate that many of the purported lenders are not legally acceptably established or otherwise licensed by the appropriate authorities to engage in the services they ostensibly provide.

Loan apps painful encounters: Nigerians narrate terrible experiences from lending companies

Recall that Legit.ng had reported that several loan firms in Nigeria like Sokoloan, NowCash, Lcredit, 9Credit have continued to violate the rules and regulations of the Central Bank of Nigeria when it comes to approval from the apex bank, ICR reports.

Aside from this, they have also perfected the use of crude methods similar to Shylock tactic to enforce loan repayment from their customers.

They also employ different illegal ways against anyone unlucky enough to default on any loan taken from them.

They share information about their debt with friends and family on their phone contacts, declaring him or her a fraudster and who had defrauded the money-lending company.

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Here are some heart wrenching experiences shared by Nigerians. In a bid to hide the identity of the victims of these loan apps, we will not be revealing their names. All experiences published here can also be found on the Facebook page of Mobile Loan Apps Debt Victims in Nigeria.

FG to punish NowCash, 9credit, other loan apps over data breach

Also, the federal government of Nigeria is set to punish lending companies like NowCash, Sokoloan, 9credit over data breach.

This was disclosed by the National Information Technology Development Agency (NITDA) in a press statement

Source: Legit.ng