Loan apps using more unethical ways for loans recovery – FCCPC

THE Federal Competition and Consumer Protection Commission (FCCPC) has raised the alarm over loan apps use of unethical methods to recover loans.

The FCCPC said it observed an increase in the violations of its regulations by the loan apps, referred to as Digital Money Lenders (DMLs).

This was disclosed in a statement on Monday by the acting Chief Executive Officer  (CEO) of the Commission, Adamu Abdullahi.

According to him, the commission is stepping up enforcement actions and taking a zero-tolerance approach to DMLs’ abuse of consumers and other abusive behaviour.

He added that the FCCPC noticed increased infractions of the Interagency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending.

“The Commission understands the increased demand for loans during this time of year, leading to an increased risk of default due to large numbers and typical cash flow challenges and constraints.

“However, the solution cannot violate the law or utilise unethical recovery methods. As such, the commission is intensifying enforcement efforts and adopting a zero-tolerance stance towards exploiting consumers or abusive conduct, whether in balance calculations, loan default enforcement, or recovery processes.

In addition, the commission said it would engage approved loan apps in the coming days for more robust compliance with regulatory frameworks. 

“Concerning operators that do not possess the commission’s approval, the scrutiny process will include law enforcement action against such, in addition to regulatory prohibition and consequences,” the commission noted.

The Federal Government, in conjunction with Google in April 2023, prohibited loan apps from accessing contacts and images of their customers.

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In a chat with The ICIR on Monday, April 10, the spokesperson of the FCCPC, Ondaje Ijagwu, said the Federal Government was putting measures in place to enforce Google’s latest policy.




     

     

    He said the action was consistent with the Nigerian authorities’ move to curtail the invasion of customers’ privacy by loan app firms.

    The ICIR reported in July 2023 that the FCCPC delisted two loan apps for violating customers’ privacy.

    Meanwhile, Nigerians continue to patronise loan apps despite their unconventional ways of recovering loans.

    These loan apps act as platforms where one can get quick loans with no collateral other than providing a bank verification number (BVN) and a request to allow pictures and contacts on a potential customer’s phone.

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    Bankole Abe
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    3 COMMENTS

    1. DEFAMATION OF NAME, CHARACTER ASSASSINATION INTRUDING INTO MY CONTACTS AND PHONE BULLYING

      I am humbly writing to this commission to complain ~the~ defamation, character assassination, and intruding into my privacy writing defaming messages to all my contacts due failure to pay back my loan at the due date

      Due to their treat I nearly had stroke but later landed on the hospital bed yet Z cash and some of them proceeded to send defamation messages to all my contacts

      Prior this time, I had pleaded and told them that they should all pardon me and be patient that I will will pay their but please help me lock my file to prevent daily increment of the interest. I promised them that I will pay.

      I am seeking the assistance this honourable commission to please help me Stop these apps of defaming my name and character.

      The name of the loan apps are:
      1. Z CASH
      2. T LOAN
      3. AJELOAN
      4. LOAN NAIRA
      5. LAIRA LOAN
      6. LYLICASH
      7. PALMPAY
      8. PALMCREDIT
      9. Gogetcred it
      10. Caycredit
      11. One credit
      12. Fairmoney
      13. Omega loan
      14. Branch
      15. Kkcash

      Though branch, fairmoney and palmcredit hasn’t start their treat yet,
      That is why I am quickly writing to this this commission to please deliver me from them before I die untimely

      I am father of 4 children and one wife
      A private school teacher of less than. #60000 monthly salary. I intended to use the money for other business but due to some issues I could not pay on time and even the business ended loss

      I plead this honourable commission to please help me because I am dying.

      Thank you and expecting a quick response to my complain

      BAMISEBI AKINOLA OLUJINMI

      Please save me ooooooo

      This is the message Zcash sent to all my contacts

      Inform Criminal Family Of BAMISEBI OLUJINMI AKINOLA Duping All Loan Apps For A Living
      0705156****,0805891****
      If The Payment Is Not Made In An Hour Time
      We Will Go To All Extent To Make Sure You Cry For Him And Your Account Will Suffer From This Also
      Note : You Are Getting This Message Because He Gave Us Your Contact As Emergency Number
      *Z CASH*

      Threat message by palmcredit

      IT’S OBVIOUS YOU WANT TO KNOW WHAT WE CAN DO AND SHOWED YOUR HEIGHT OF IRRESPONSIBILITY, WE DIDNT DO WRONG BY HELPING YOU WITH THE FUNDS
      YOU WILL REGRET AND BITE YOUR FINGERS FOR THROUGH THIS TREND IF PALMCREDIT PAYMENT IS NOT CLEARED NOW

      Threat message from palmcredit

      OUR UINT HAS RECEIVED YOUR FILE FROM PALMLOAN. BY 4PM TODAY YOU WILL FACE FULL REPERCUSSIONS. THIS WILL ACT AS A DISINCENTIVE TO OTHER IRRESPONSIBLE DEBTORS.

      Threat from cashrepute

      GOOD morning
      Any harmful you see from the company please take it like that the company been patient enough for you, pay whatsoever you have now
      CASHREPUTE

      Threat message from Lilycash

      CLEAR PHOTOS & HORRIBLE FAMILY INFORMATION HAS BEEN FORWARDED TO BE CIRCULATED ONLINE AS WE CRIMINALLY ADDRESS ALL YOUR PHONE CONTACTS NOW

      LILYCASH/CHERRYCASH

    2. Thank God i later find where to make a complain nd report. Have been searching for how to report Someone very close to me just poisons herself today all because of this threat message BGloan sent to her this morning, i have send this to other journalists as well, pls this loan sharks must go down. she got scared nd dnt want to be embarrassed by them sending her pictures to her contacts, this person is 6weeks pregnant nd she already complained to me about the loan she borrowed nd she said she even called thier numbers to explain things to them, but to no avail, i saw all her struggling
      nd effort just to repay them but things are not working well for her. not untill she received their threat messages this morning, she is in coma right now, nd may God let her survive it, the doctor told us she lost her pregnancy, this made us went to the station to made a report nd when they called the number that message her, it was a female that took it, but she claim she didn’t hear what they are saying, because they use the victim number, they later proceed to use another number, nd she gave it to a man to speak to us, we complain but they said we are to call the management, now we cant find the management number or information anywhere they are trying to chat with the customer care now, but they never reply up till now, the police are making their investigation on how to locate them, cus she also wrote down a letter to back it up before she took that step, am in pain right now, nothing most happen to her o. If not that the family doesn’t have what it takes, they sud have take a bold step by now. All this loan app most be banned ENOUGH IS ENOUGH

    3. Please a loan app is threatening to call my contacts, I thought it was illegal to do that. Please help me

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