The Federal Competition & Consumer Protection Commission (FCCPC) has announced the de-listing of two digital money lending companies over alleged illegal practices.
Announcing the names of the affected companies, the Executive Vice Chairman/Chief Executive Officer of the Commission, Babatunde Irukera, said the affected companies include Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited, along with their respective Apps – “Getloan” and “Camelloan.”
Irukera said the decision to delist the two companies was pursuant to the provisions of Sections 17(a), (e), (g), (h). (1), (m), (s). (x). (v), 18(3), 123; 124: 127; 129 and 130 of the Federal Competition and Consumer Protection Act, 2018 (FCCPA) interim regulatory/registration framework and guidelines for digital lending 2022.
On August 18, 2022, the Commission, on behalf of the Joint Regulatory and Enforcement Task Force (JRETF) established the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.
Under the guidelines, November 14, 2022, was established as the expiry date for Digital Money Lenders (DMLs) already in business, or existing on Google Playstore to complete the compliance requirements, or risk removal from Playstore.
The Commission said the expiration date also applied to continuing and uninterrupted services by payment systems and gateways or other financial institutions that provide services to DMLs.
However, on December 6, 2022, the deadline was initially extended to January 31, 2023, and subsequently until March 27, 2023.
on June 9, 2023, the Commission announced the recommencement of registration of DMLs for businesses either not previously in existence during the registration period, or were not registered for business for any justifiable reason(s).
Despite the expiration of the deadline, the Commission said its investigations revealed the proliferation of illegal loan recovery practices by those not approved or listed to be on Playstore and other financial services providers.
“The violating DMLs have resorted to the use of Android Package Kits (APK) file formats. The illegal DMLs provide links to consumers to visit unregistered websites using their Android devices/phones.
“In the course of that interaction, consumers’ private information that is otherwise protected and prohibited from access or download by DMLs or their apps is accessed and downloaded.
“This conduct is prohibited by sundry laws, particularly relevant data privacy protection instruments, and more specifically, the Limited Interim Regulatory/Registration Framework & Guidelines for Digital Lending 2020 of the Commission,” the regulator said.
Further investigations and tracking of the illegal DMLs, the Commission said, reveal duplicity by at least two otherwise legally registered DMLs on the Commission’s approval list, including the two now being delisted.
The nature of the duplicity, the Commission explained, bordered on the registered DMLs deploying their approved status and their inclusion on the approved list and Playstore to carry out illegal activities.
Some of the illegal activities include providing clearance for services by other financial services/institutions as an alternate channel, as well as engaging in the use of APK to attract borrowers to a process and practice that is illegal and unregulated.
“The companies or apps so far identified, and for which there is supporting evidence of this malfeasance are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited. They are the owners of “Getloan” and “Camelloan” respectively, and occupy Nos. 1 and 65 on the Approved List of the Commission, which is available on the Commission’s website.
“Accordingly, the Commission has now permanently delisted Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited, along with their respective apps – “Getloan” and “Camelloan,” the Commission said in a statement on Thursday
In addition, the Commission said it has entered an Order with Google Playstore and other payment and financial service providers, permanently prohibiting the provision of any services associated with digital lending to Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited.
Reiterating that the revocation was permanent without option or opportunity of reconsideration, the Commission said the same sanctions would apply to all other violators discovered to have committed the same offence.
It warned that all information and evidence concerning the offence would be transferred to law enforcement agencies and or any other relevant regulator(s) for further appropriate actions.
Other regulatory enforcement actions by the Commission include the placement of DMLs that have refused or failed to register under the Guidelines on its watchlist for strict surveillance and necessary action.
The Commission said it would continue to scrutinize listed DMLs and periodically update the list to ensure only businesses that consistently and completely comply with the provisions of the regulatory framework were allowed to do business legally in Nigeria.
While advising consumers to exercise restraint and discretion in selecting DMLs to patronize, the Commission said it specifically recommended that consumers patronized only DMLs on the Commission’s approved list to reduce the risk of falling victim to illegal and prohibited lending and recovery practices.
”Consumers must consider only DMLs whose apps can be downloaded from Google’s Playstore, as only those have been subjected to regulatory scrutiny and the technology associated with their apps precluded from accessing and downloading private information of consumers. All other DMLs are operating illegally,” the Commission said.
