FCCPC Clamps Down On Digital Money Lenders

The Federal Competition and Consumer Protection Commission (FCCPC) has barred all financial technology companies from providing payment or transaction services to online money lenders known as ‘loan sharks’.

Some of the digital money lenders barred are EasyCredit, Easy Moni (Ease Cash), GoCash, Okash, Speedy Choice and Kashkash.

Recall that in March 2022, the Federal Government had shut down the operation of some illegal online money lenders. The raid was carried out by the FG’s joint committee investigating rights violations and unfair practices.

The Federal Government said most of these online money lenders did not register with the Corporate Affairs Commission (CAC). The FG also stated that the online money lenders involved in activities that violate the rights of Nigerian consumers.

Also, the government lamented the interest rates charged by the digital money lenders barred from operation. It said the interest charged breaches the ethics of how lending is done.

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Sadly, these dubious online institutions offer short-term loans to help customers meet pressing needs.

However, they resort to unethical and dishonourable styles of cyberbullying, and breach of data privacy and harassment of the subscribers who may have defaulted in the repayment of loan.

Furthermore, it was revealed that some of these platforms placed under investigation devise means to sabotage being caught. They use different financial services options and deploy certain technology to avoid app suspension and account freezing.

While speaking, the Executive Chairman of FCCPC Babatunde Irukera said the commission has ordered technology and telecommunications companies to end any service provision to the online money lenders.

“With the operations today, the commission expects an appreciable additional reduction in these unacceptable practices. The commission has also today entered further Orders that will disable or diminish violators’ ability to devise circumvention efforts or alternative mechanisms to circumvent the objective of the investigation and protection of citizens,” Irukera said.