Loan applications have been given five days by the Federal Competition and Consumer Protection Commission (FCCPC) to demonstrate that they adhere to the rules governing the sector or they will be removed and penalized.
The FCCPC also requested that Google delete the 18 lending apps from the Playstore for breaking its rules.
FCCPC lists penalty for defaulters
The commission said compliance with its rules was mandatory, and failure to adhere constitutes a violation of the law.
The 18 loan apps delisted were either operating without approval or violated the Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending Guidelines of 2022, FCCPC said.
On July 20, 2023, the commission delisted two loan apps, Getloan and Cameloan, from the play store, insisting they violated its guidelines.
“During the commission’s continuing investigation and tracking of these illegally operating digital money lenders, the commission has discovered duplicity by at least two otherwise legally registered digital money lenders on the commission’s approval list.”
The Executive Vice Chairman/ Chief Executive Officer, Babatunde Irukera, stated that the loan apps operating online or in other places must comply with its rules.
It listed the loan apps as:
- Getloan, Joy Cash
- Camelloan, Cashlawn,
- Eagle cash
- Cashme, Easynaira
- Hen Credit loan
- Nut loan
- Cash door,
- Cashpal and
Punch reported that the consumer watchdog stated that loan apps relied primarily on Android Package Kits (APKs) formats to target consumers outside Google Play Store and evade compliance.
FCCPC shines spotlight on APK files
Irukera said compliance with its set rules is mandatory for all loan apps regardless of where they operate.
“Digital Money Lenders operating by any means or on any platforms whatsoever are now required to provide evidence of compliance with the guidelines within five days from the date of this release.
“Also, all existing and approved DMLs providing digital lending services through APK file formats, in addition to Playstore, are required to provide evidence that such APK operations comply with the law.”