The federal government through the Federal Competition and Consumer Protection Commission (FCCP) has cautioned digital money lenders over some of their practices.
According to the FCCP, their terrible practices led to the ongoing investigations.
The federal government agency consequently warned the online loan sharks to cease and desist the interest compounding and loan repayment/collection practices.
It insisted that any digital 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).
These bad conducts in question are:
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1. Excessive interest rates which is not in conformity with the Central Bank of Nigeria's guidelines.
2. Invasion of peoples privacy
3. Disclosure of customer's data to third party
4 Defamation of character
Online loan apps: List of two actions FG has taken against Sokoloan, NowCash, others
Recall that Legit.ng had earlier reported that the federal government of Nigeria has finally commenced crackdown on online loan apps parading as lenders in Nigeria.
According to the government, the online loan companies have caused a lot of damages in the country through invasion of peoples privacy, breaching Nigeria's data laws among others.
As a result of this, the federal government, in other to protect the interest of Nigerians from these online loan apps and their illegal practices, has listed two important things it is set in motion against them.
Exposed: Faces of some online loan apps agents terrorising and defaming Nigerians
Legit.ng had also reported that many Nigerians are reportedly battling high blood pressure as a result of the activities of unscrupulous online loan sharks taking advantage of the economic situation of the country.
These criminal loan sharks that parade google playstore have become experts in blackmail and blatant invasion of peoples privacy. They have been accused of employing different types of mannerless and uncultured characters as workers.
The federal government have also insisted that most of them are illegally operating in Nigeria. And in efforts to regulate them, the FG through an Inter-Agency Joint Regulatory & Enforcement Task Force of FCCPC, NITDA, ICPC raided some of the loan sharks offices in Lagos state.