The Federal Competition & Consumer Protection Commission (FCCPC), has delisted non-compliant digital loan Apps from Google Playstore.
According to the executive vice chairman of the Commission, Babatunde Irukera, recently, the Commission observed a resurgence in prohibited loan recovery methods, primarily carried out by non-approved DMLs.
“These violating DMLs used APK file formats, redirecting consumers to unregistered websites to access private information. Such practices breach data privacy protection laws and the Commission’s regulatory guidelines.
“During investigations, the Commission uncovered duplicity among two legally registered DMLs. Despite being approved on the Playstore, these DMLs engaged in illegal conduct, attracting borrowers using APK links.”
Irukera named Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited, as culprits, ,adding that they have been permanently delisted, along with their respective apps – “Getloan” and “Camelloan.”
He also disclosed that the Commission has ordered Google Playstore and other financial service providers to permanently prohibit any dealings with these entities.
“The Commission remains resolute in enforcing compliance and has placed non-registered DMLs on its watchlist for strict surveillance and appropriate actions. Consumers are urged to exercise caution and only patronise DMLs on the approved list to avoid falling victim to illegal lending and recovery practices,”he added.
To ensure consumers’ safety, the Commission recommended choosing DMLs whose apps are downloadable from Google’s Playstore, as they have undergone regulatory scrutiny and protect private information.
“The Commission, together with JRETF, continues to track illegal operators using APK and welcomes credible evidence from the public.”
The Commission in partnership with the Joint Regulatory and Enforcement Task Force (JRETF), has implemented a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.
The guidelines require Digital Money Lenders (DMLs) to comply with specified requirements or face removal from Google Playstore.
Initially, the deadline was set for November 14, 2022, and later extended to January 31, 2023, and finally to March 27, 2023.
The Commission resumed registration for businesses that didn’t exist during the initial period or had justifiable reasons for not registering.
