Loan apps in trouble. The Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), has recently taken decisive action against 18 digital lending platforms (DLPs) found to be in violation of registration rules and guidelines.
This move comes as part of the government’s efforts to regulate the digital lending industry and ensure consumer protection.
The affected loan apps that have been delisted from the Google Play store include Getloan, Swiftkash, JoyCash-Loan up to 1 million, Camellia, Cashhlawn, Nairaloan, Eaglecash, Moneytreefinance MadeEasy, Luckyloan Personal loan, Cashme, Easynaira, Swiftcash, Crediting, Hen credit loan, Nut loan, Cash door, Cashpal, and Naireasy gist loan.
According to the FCCPC, these 18 digital money lenders were operating without the necessary regulatory approval or were found to be in breach of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines).
FG Removes Illegal Loan Apps From Play Store
As a result, the commission took swift action to delist and request their removal from the Google Play store.
The FCCPC emphasized that compliance with their guidelines is now mandatory for all digital money lenders. Any failure to adhere to these regulations is considered a violation of the law.
The commission made it clear that only digital money lenders with proper regulatory scrutiny and compliance, evidenced by written approval from the FCCPC, are allowed to operate on the Play Store.
In a statement, Babatunde Irukera, the Executive Vice Chairman/CEO of FCCPC, highlighted the commission’s commitment to engaging with Google to understand how and why apps without regulatory approvals were made available on their platform.
The FCCPC aims to ensure that all digital lending apps on the Play Store meet the necessary requirements and safeguards to protect consumers.
The commission has also called for existing and approved DMLs operating through any means to provide evidence of compliance within five days from the date of the release.
They are required to revalidate the information provided by filling out the DL Form 001 on the commission’s website.
FG Previously Removes Illegal Loan Apps: Getloan and Camelloan loan apps
The delisting of Getloan and Camelloan loan apps was not the first time the FCCPC took action against non-compliant lenders. Just a few weeks ago, these two apps were removed from the Google Play Store for harassing Nigerians.
FG Removes Illegal Loan Apps From Play Store
The commission launched an investigation into the apps and found them to be in violation of regulations.
It was discovered that the loan apps were owned by Sycamore Integrated Solutions Limited, Orange Loan, and Purple Credit Limited.
However, Sycamore Integrated Solutions Limited refuted the claim, stating that the Getloan app was an impostor using their name to operate on the Play Store.
The FCCPC found that some digital money lenders had been resorting to using Android Package Kits (APK) file formats to attract borrowers outside of the Google Play store.
This practice was deemed illegal and unregulated. Despite the delisting of the two apps, they have now re-emerged among the list of 18 apps the commission has directed Google to remove from the Play Store.
Babatunde Irukera reiterated that compliance with the guidelines is mandatory for all digital money lenders, regardless of whether they intend to be placed on Play Store, operate through APK file formats, or any other means.
Failure to comply with the guidelines is a violation of the law and could lead to permanent delisting and even law enforcement action, including prosecution.
Conclusion
The FCCPC remains steadfast in its commitment to enforce these regulations to safeguard consumers and maintain a fair and competitive digital lending landscape in Nigeria.
They continue to engage with stakeholders, including Google, to strengthen the oversight and compliance measures for the digital lending industry, ensuring the protection of consumers and the overall integrity of the market.
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