Business
Revealed! Real Reason FG Delisted 18 Digital Loan Apps
The Federal Competition & Consumer Protection Commission (FCCPC) has delisted over 18 digital money lending companies from Google.
FCCPC on behalf of the Joint Regulatory and Enforcement Task Force (JRETF) had earlier established the Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending in 2022.
The Guidelines set November 14, 2022 as expiry date for Digital Money Lenders (DMLs) already in business, and existing on Google Playstore to complete the compliance requirements or risk removal from Playstore. The expiration date also applied to continuing and uninterrupted service by payment systems and gateways or other financial institutions that provide services to DMLs.
On December 6, 2022, the Commission extended the sunset deadline to January 31, 2023, and subsequently provided a final extension until March 27, 2023.
On June 9, 2023, the Commission recommenced registration of DMLs for businesses not previously in existence during the registration period, or in extenuating and exceptional cases where there is sufficient justifiable reason(s) for failure to previously register for business that was then existing or in operation.
Reason
The Commission noted that the violating DMLs have resorted to the use of Android Package Kits (APK) file formats.
The illegal DMLs provide links to consumers to visit unregistered websites using their Android devices/phones. In the course of that interaction, consumers’ private information that is otherwise protected and prohibited from access or download by DMLs or their apps is accessed and downloaded.
Babatunde Irukera, the Vice Chairman of FCCPC on the 20th of July, 2023, said the Commission delisted certain approved and registered Digital Money Lending companies and, or their Applications (apps).
By that action, the affected DMLs ceased to operate legally.
In addition, the Commission entered an order to Google LLC (Google) to remove same from the Playstore and prohibited payment gateways or services from providing or continuing services to the affected businesses.
According to the Commission, the delisted apps include; Getloan, Joy Cash-Loan Up to 1,000,000, Camelloan, Cashlawn, Nairaloan, Eaglecash, Moneytreefinance, Made Easy, Luckyloan Personal Loan, Cash, Easynaira, Swiftcash, Crediting, Swiftkash, Hen Credit loan, Nut loan, Cash door, Cashpal and Nairaeasy gist loan.
“Under the Guidelines, only DMLs that have been subjected to regulatory scrutiny and compliance evidenced by written approval from the Commission are allowed on Playstore.
“Compliance with the Guidelines is mandatory for all DMLs regardless of whether they intend to be placed on Playstore, operate by APK file formats, or any other means for that matter.
“Failure to comply with the Guidelines is a violation of law and renders any such operation illegal. DMLs operating by any means or on any platforms whatsoever are hereby required to provide evidence of compliance with the Guidelines within five (5) days from the date of this Release.
“Also, all existing and approved DMLs providing digital lending services through APK file formats in addition to Playstore, are required to provide evidence that such APK operations are in compliance with the law. All previously approved DMLs or otherwise must revalidate the information provided to the Commission by filling DL Form 001 and resubmit same to: lenderstaskforce@fccpc.gov.ng.
“DMLs are reminded that infraction or infringements may lead to permanent delisting and prohibition, as well as law enforcement action, including prosecution,” the Commission stated.
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