FCCPC, Others Investigate Loan Apps For Violating Rights of Customers
Pursuant to Sections 17(a), (e), (g), (h), (i), (m), (s), (x), (y), 18(3); 123; 124; 127; 129 and 130 of the Federal Competition and Consumer Protection Act (FCCPA), 2018
Monday, March 14, 2022: The inter-agency Joint Regulatory and Enforcement Task Force (JRETF); particularly FCCPC, NITDA and ICPC on Friday, March 11, 2022, advanced investigations with respect to digital money lenders.
In furtherance, and pursuant to an Order of the Federal High Court procured by, and granted to the FCCPC, the JRETF executed a search and seizure Order on certain digital money lenders.
As part of the operation, the JRETF together with the Nigeria Police Force and bailiff of the Federal High Court searched locations of the money lenders, extracted valuable evidence and in some circumstances prohibited or restricted continuing operations.
In addition to the physical operation noted above, the Commission entered and served Orders on multiple financial institutions freezing or suspending operations of certain accounts which some of the money lenders have used to conduct implicated business or transactions subject of investigation.
Further, the Commission also entered and served wide ranging orders on Google LLC (Play Store) and Apple Inc. (App Store) to enforce the withdrawal of certain applications where evidence has established inappropriate conduct or use of the application in violation of the rights of consumers.
The Order of the Commission also prohibits acceptance and presentation of new applications for the same purpose without regulatory assessment and approval.
The investigation is still active and ongoing. The JRETF expects further and similar action as it continues to gather additional intelligence to that effect.
In the interim, the Commission admonishes all the businesses that were subject of regulatory intervention on Friday, March 11, 2022, to cease and desist the interest compounding and loan repayment/collection practices that are the objects of this investigation.
In the event that any of these businesses continue in any of this conduct, or the Commission receives credible evidence of such, violators will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).
The Orders of the Commission are without prejudice to existing borrowers repaying any legitimate loans pursuant to fair and acceptable terms and conditions; or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness. The obligation to comply with the above extends to all operatives, employees or agents of the affected businesses.
The JRETF welcomes any useful information that may assist this investigation. The same may be provided at the Commission’s dedicated evidence gathering repository at: lenderstaskforce@fccpc.gov.ng.
The Commission/JRETF will continue to provide updates to the public, and invites consumers to support the investigation by continuing to provide actionable intelligence about persons associated with the businesses or practices, their telephone numbers and any other pertinent information.
Babatunde Irukera
Executive Vice Chairman/Chief Executive Officer
For the Joint Regulatory and Enforcement Task Force
