The Federal Competition and Consumer Protection Commission (FCCPC) said it has contacted digital app distributors, including as Google Play and Apple Stores, to stop illicit lending apps from being distributed on their platforms.
According to Anaedoonline.ng, the decision was taken in response to public uproar over policy infractions and human rights violations by some online money lenders.
The majority of the impacted lending firms appeared during the Coronavirus shutdown.
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They provide loans to low-income Nigerians without requiring collateral.
Their techniques of recovering monies from defaulters, on the other hand, have been criticized as suicidal and humiliating, as well as a breach of financial regulations.
Mr Babatunde Irukera, the FCCPC’s Executive Vice Chairman, claimed the commission had blocked no fewer than 30 bank accounts owned by illegal loan organizations during a news briefing yesterday in Abuja.
Irukera went on to say that Google and Apple Stores had been notified of the problem and were advised to remove some loan applications from their stores as soon as possible, noting that there were specific procedures that needed to be followed.
He also stated that the commission was now negotiating with three big lending companies whose operations had been harmed as a result of the raid.
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Irukera said: “The day we conducted the raid, we have some limited information about the bank accounts that some of the loan companies operated. All the bank accounts that were provided were immediately blocked but these companies operate multiple bank accounts with multiple names.
“Between the time we raided and now, we have discovered additional 30 accounts and all have been frozen and we will continue to freeze as we discover them.”
“I am certain that with the actions that we have taken and the nature of the engagement we are having with the loan companies, at least three of the major ones that their businesses have been severely affected by either our search or the account closure they are modifying”, Irukera noted.
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The FCCPC chairman said though the processes will take some time, he can assure that the space will change soon.
Irukera called for an improved partnership with the media to educate members of the public on their consumer rights in order to achieve the objectives of the commission.
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