The Nigerian government has taken a decisive step to protect its citizens from harassment by loan apps. Two registered loan apps will be removed from the Google Play Store due to their aggressive tactics. The Federal Competition and Consumer Protection Commission (FCCPC) made this announcement and also plans to publish a list of unregistered, illegal loan apps currently operating in the country.
The FCCPC has been vigilant in monitoring digital money lenders that have failed to register under its guidelines. Such lenders have been placed on a watchlist, and the commission will take appropriate action against them. To ensure transparency, the list of these digital money lenders will be accessible on the FCCPC’s website. The commission will continually review and update the list to ensure compliance with regulatory standards for lawful operations in Nigeria.
In light of this situation, the FCCPC strongly urges Nigerians to be cautious when selecting digital money lenders. It advises consumers to only patronize lenders on the approved list to avoid falling prey to illegal and unethical lending and recovery practices.
As part of its investigation, the FCCPC has permanently delisted two digital lenders, namely Sycamore Integrated Solutions Limited and Purple Credit Limited, along with their respective apps, ‘Getloan’ and ‘Camelloan.’ This decision came after the commission found evidence of duplicity by these lenders, who were operating legally but engaging in illegal and unregulated practices to attract borrowers.
In Nigeria, around 180 loan apps have received partial or full approval from the FCCPC to conduct business. However, the recent action demonstrates the government’s commitment to weeding out those engaging in unethical practices that exploit consumers.
The move to protect Nigerians from loan app harassment signifies a significant step in consumer protection in the digital lending space. The government is keen to ensure that all financial service providers adhere to the regulatory framework, putting the interests and safety of consumers first.
It is essential for Nigerians to be aware of the potential risks associated with using digital loan apps and to exercise caution while choosing a lender. By relying only on approved lenders, individuals can mitigate the chances of falling victim to illegal loan practices.
As technology continues to shape the financial landscape in Nigeria, the government and regulatory bodies like the FCCPC must remain proactive in safeguarding the rights of consumers. By keeping a close eye on the digital lending sector and taking necessary actions against non-compliant businesses, the government aims to foster a fair and trustworthy financial ecosystem for all citizens.
Ultimately, this initiative reflects the government’s commitment to promoting responsible lending practices and ensuring that the fintech industry operates in line with the law. By enforcing stricter guidelines and penalties for non-compliant lenders, the government hopes to foster an environment where citizens can access loans safely and without fear of harassment or exploitation.
