Nigeria has announced the ban of two major loan apps, namely ‘Getloan’ and ‘Camelloan’ over their unethical loan practices, policy violation and incessant harassment of consumers.
Getloan And Camelloan Banned Due To unregulated practices, including the use of APK to attract borrowers
The decision by the Nigerian Government to ban and delist these two registered loan apps are in its bid to protect consumers from varying harassment and exploitation.
The banned loan apps are ‘Getloan’ operated by Sycamore Integrated Solutions Limited and ‘Camelloan’ operated by Purple Credit Limited.
These companies were found to have engaged in illegal and unregulated practices, including the use of APK (Android application package) to attract borrowers.
The government through the Federal Competition and Consumer Protection Commission (FCCPC) made this announcement on Thursday, reinforcing its commitment to safeguarding the interests of Nigerian citizens.
Nigeria to release official list of unregistered, Illegal Loan Apps
The FCCPC also adds that it will soon unveil a fresh list of illegal, unregistered loan apps and digital money lenders operating within Nigeria.
According to the Executive Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera, digital money lenders who have refused or failed to register under the guidelines will now be placed under strict surveillance, and necessary actions will be taken against them.
“The commission has also placed digital money lenders that have refused or failed to register under the guidelines on its watchlist for strict surveillance and necessary action,” stated Babatunde Irukera in an official statement.
He further emphasised that the list of these unregistered digital money lenders would be published on the commission’s website, warning consumers to exercise caution when dealing with such lenders.
To protect consumers from falling victim to illegal and prohibited lending and recovery practices, Irukera urged Nigerians to patronise only those digital money lenders on the approved list.
This move aims to ensure that businesses operating in the digital lending space fully comply with the regulatory framework and operate legally within Nigeria.
FCCPC Unveils Names of Permanently Banned And Delisted Loan Apps in Nigeria
The FCCPC boss also disclosed the names of the permanently delisted loan apps and their respective parent companies.
The banned loan apps are ‘Getloan’ operated by Sycamore Integrated Solutions Limited and ‘Camelloan’ operated by Purple Credit Limited.
These companies were found to have engaged in illegal and unregulated practices, including the use of APK (Android application package) to attract borrowers.
The ongoing investigation by the commission revealed a troubling discovery, with two legally registered digital money lenders being exposed for duplicity in their operations.
Despite being listed on the commission’s approval list, these lenders were found to be involved in unauthorised practices.
The FCCPC also disclosed that it has delisted a few loan apps while making a vow to close more in its effort to protect the general public.
Release: Update on Registration of Digital Money Lenders (DMLs) Under the Inter-Agency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022@NigeriaGov @NGRSenate @HouseNGR @officialEFCC pic.twitter.com/7u451whVv8
— FCCPC Nigeria (@fccpcnigeria) July 20, 2023
It added that digital moneylenders that have yet to register under its guidelines have been added to its watchlist for strict surveillance and necessary action.
“The commission has also placed digital money lenders that have refused or failed to register under the guidelines on its watchlist for strict surveillance and necessary action,” the statement read in part.
“The list of those digital money lenders will be made available on the commission’s website.
Our earlier reports indicate that the FCCPC has thus far registered and approved around 173 loan apps to operate in Nigeria.
However, with the latest crackdown, the commission is ensuring that only compliant businesses are allowed to continue their operations in the digital lending space.
The government’s decisive action sends a clear message to digital money lenders that any form of harassment, exploitation, or violation of consumer rights will not be tolerated.
Nigerians are encouraged to stay vigilant and adhere to the approved list of digital money lenders to safeguard their financial interests.
The FCCPC will continue to update and review the list periodically, reinforcing the importance of ethical and lawful lending practices within the country.
