The Federal Competition and Consumer Protection Commission (FCCPC) alongside the Federal Government of Nigeria has urged Apple Appstore and Google Play Store to take down nebulous loan apps as the agency is poised to prosecute digital money lender whose conduct violates extant laws.
This statement was made known by the CEO of FCCPC, Babatunde Irukera in furtherance to some actions a few weeks ago when some digital money lenders were raided in Lagos.
According to him, he disclosed that some money lenders whose accounts have been frozen and under investigation have shown the desire to help commission comb out the bad eggs in their midst.
As a condition for them to continue in business, some of the money lenders are expected to stop contacting people on contact lists/third parties of borrowers or defaulters; discontinue further abusive and inappropriate language in communication with loan defaulters or borrowers.
They are also required to provide mechanisms for transparency regarding loan repayment fees, default or late payment charges as well as interest calculation to the government.
The FCCPC added that the mechanism must include open, accessible, and responsive feedback and a dispute resolution framework that complies with fair lending and loan recovery principles.
Meanwhile, the FCCPC now has information about other money lending operators; account information associated with some of the companies; information about staffing, recruitment policies and strategies.
The agency found a “complex web of ownership or corporate relationships with mostly foreign/offshore companies and promoters; recognized and unknown payments systems, sources of operational capital, and methods of repatriating business proceeds.”
Irukera announced that certain operatives of some operators have been interrogated including foreign nationals while the scope of questioning includes the commission’s continuing undercover surveillance, reconnaissance, and intelligence gathering.
It was discovered that one of the money lenders “corruptly secured a public official as an asset to assist with providing critical and sensitive internal confidential information about the investigation”.
He also added that “FCCPC confirmed custody of credible evidence of the planning, discussions, meetings, execution (including tangible evidence of inducement), and participants in the “criminal enterprise”.
“The commission is proceeding in contemplation and, or preparation of criminal charges and admissible evidence concerning potential criminal defendants.”
He finally commended the consumers for diligent cooperation in providing vital and meaningful information in assisting the commission’s investigation.