Nigerian regulator delists two digital money lenders
In a bid to protect consumers and maintain a regulated financial ecosystem, the Federal Competition & Consumer Protection Commission of Nigeria (FCCP) on Thursday delisted two digital money lenders (DMLs).
The commission, acting on behalf of the Joint Regulatory and Enforcement Task Force (JRETF), took decisive actions against the two companies for their alleged involvement in fraudulent practices.
According to a statement by the commission’s boss, Babatunde Irukera, the two companies are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited.
Background
The regulatory body established the limited interim regulatory/registration framework and guidelines for digital lending in 2022, with an initial expiration date set for 14 November 2022, for existing DMLs on Google Playstore to complete compliance requirements. Failure to comply with these guidelines would result in removal from the Playstore, it said.
As the initial deadline approached, the commission said it noticed a resurgence in prohibited loan recovery methods employed by certain DMLs.
It said its investigations revealed that these illegal lenders were using Android Package Kits (APK) file formats to redirect consumers to unregistered websites.
During this process, it said, consumers’ private information, which should have been protected, was accessed and downloaded by the firms.
READ ALSO: Nigerian stocks fall further as investors dump bank shares
The commission, to address the rising concern, extended the deadline several times.
However, as these illegal practices continued, the regulatory body decided to recommence registration for DMLs that had not previously existed during the initial registration period or faced exceptional circumstances leading to their failure to register.
During the commission’s ongoing investigation and tracking of these illegal DMLs, it was discovered that some registered DMLs had engaged in duplicity.
These registered lenders, while appearing on the approved list and Playstore, also used APKs to attract borrowers to illegal and unregulated lending practices, FCCP alleged.
“The companies or apps so far identified, and for which there is supporting evidence of this malfeasance are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited,” it said.
“They are the owners of “Getloan” and “Camelloan” respectively, and occupy Nos. 1 and 65 on the Approved List of the Commission, which is available on the Commission’s website.
“Accordingly, the Commission has now permanently delisted Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited, along with their respective apps – “Getloan” and “Camelloan”. In addition, the Commission has entered an Order to Google Playstore and other payment and financial service providers, permanently prohibiting the provision of any services associated with digital lending to Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited.”
The regulatory body made it clear that the revocation and actions taken against these violators were irrevocable and would serve as a precedent for dealing with any other violators discovered in the future. Information and evidence on these businesses would also be forwarded to law enforcement agencies and relevant regulators.
To further protect consumers, the commission said it placed DMLs that had failed to register under the guidelines on a watchlist for strict surveillance and potential necessary action.
The list of such DMLs would be made available on the commission’s website to inform consumers.
Caution
In light of these recent developments, the commission reiterated its advice to consumers to exercise caution when selecting digital money lenders.
It recommended that consumers patronise only DMLs on the commission’s approved list, as these lenders have undergone regulatory scrutiny, ensuring the safety and privacy of consumers’ information. All other DMLs operating outside the approved list were deemed illegal and should be avoided, it said.
The commission and the JRETF pledged to continue their efforts in tracking illegal operators employing APKs and other means to interact with consumers.
They also encouraged the public to provide credible evidence and report any violations through the designated email address, [email protected].
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In a bid to protect consumers and maintain a regulated financial ecosystem, the Federal Competition & Consumer Protection Commission of Nigeria (FCCP) on Thursday delisted two digital money lenders (DMLs).
The commission, acting on behalf of the Joint Regulatory and Enforcement Task Force (JRETF), took decisive actions against the two companies for their alleged involvement in fraudulent practices.
According to a statement by the commission’s boss, Babatunde Irukera, the two companies are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited.
Background
The regulatory body established the limited interim regulatory/registration framework and guidelines for digital lending in 2022, with an initial expiration date set for 14 November 2022, for existing DMLs on Google Playstore to complete compliance requirements. Failure to comply with these guidelines would result in removal from the Playstore, it said.
As the initial deadline approached, the commission said it noticed a resurgence in prohibited loan recovery methods employed by certain DMLs.
It said its investigations revealed that these illegal lenders were using Android Package Kits (APK) file formats to redirect consumers to unregistered websites.
During this process, it said, consumers’ private information, which should have been protected, was accessed and downloaded by the firms.
READ ALSO: Nigerian stocks fall further as investors dump bank shares
The commission, to address the rising concern, extended the deadline several times.
However, as these illegal practices continued, the regulatory body decided to recommence registration for DMLs that had not previously existed during the initial registration period or faced exceptional circumstances leading to their failure to register.
During the commission’s ongoing investigation and tracking of these illegal DMLs, it was discovered that some registered DMLs had engaged in duplicity.
These registered lenders, while appearing on the approved list and Playstore, also used APKs to attract borrowers to illegal and unregulated lending practices, FCCP alleged.
“The companies or apps so far identified, and for which there is supporting evidence of this malfeasance are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited,” it said.
“They are the owners of “Getloan” and “Camelloan” respectively, and occupy Nos. 1 and 65 on the Approved List of the Commission, which is available on the Commission’s website.
“Accordingly, the Commission has now permanently delisted Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited, along with their respective apps – “Getloan” and “Camelloan”. In addition, the Commission has entered an Order to Google Playstore and other payment and financial service providers, permanently prohibiting the provision of any services associated with digital lending to Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited.”
The regulatory body made it clear that the revocation and actions taken against these violators were irrevocable and would serve as a precedent for dealing with any other violators discovered in the future. Information and evidence on these businesses would also be forwarded to law enforcement agencies and relevant regulators.
To further protect consumers, the commission said it placed DMLs that had failed to register under the guidelines on a watchlist for strict surveillance and potential necessary action.
The list of such DMLs would be made available on the commission’s website to inform consumers.
Caution
In light of these recent developments, the commission reiterated its advice to consumers to exercise caution when selecting digital money lenders.
It recommended that consumers patronise only DMLs on the commission’s approved list, as these lenders have undergone regulatory scrutiny, ensuring the safety and privacy of consumers’ information. All other DMLs operating outside the approved list were deemed illegal and should be avoided, it said.
The commission and the JRETF pledged to continue their efforts in tracking illegal operators employing APKs and other means to interact with consumers.
They also encouraged the public to provide credible evidence and report any violations through the designated email address, [email protected].
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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