The Federal Competition and Consumer Protection Commission (FCCPC) has delisted two digital money lenders (DMLs) for illegal, prohibited and unregulated activities.
In a statement on the commission’s official Twitter handle on Friday, its Executive Vice Chairman, Mr Babatunde Irukera said that it had also set a deadline for all DMLs to comply with its regulations.
FCCPC said the firms were found to be using Android Package Kits (APK) to attract vulnerable borrowers; a process and practice deemed illegal and unregulated by the government agency.
”The commission notes a resurgence in the occurrence of prohibited loan recovery methods and practices in the past weeks.
”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’.
”FCCPC has entered an order to Google Playstore and other payment and financial service providers, permanently prohibiting the provision of any services associated with digital lending to the companies.
”The commission reiterates that this revocation and action are permanent without option or opportunity of reconsideration, and the same consequence shall apply to all other violators”, he said.
Irukera said the commission would forward all information and evidence in respect of the two companies’ activities to law enforcement agencies and other regulators for appropriate action.
He therefore warned consumers against dealing with the two de-listed loan companies.
The executive vice chairman said that the commission had with the approval of the Joint Regulatory and Enforcement Task Force established the Limited Interim Regulatory and Registration Framework and Guidelines for Digital Lending.
He said the guidelines gave 14 November as the deadline for all DMLs in business and on Google Playstore to comply with the guidelines or risk removal from Playstore.
Irukera assured Nigerians that the FCCPC would continue to scrutinise all listed DMLs and periodically update the list on its website, to ensure that only businesses that consistently and completely comply with the regulations were allowed to do business.
He advised consumers to patronise only DMLs on the commission’s approved list.
Responding to the allegations, Sycamore Integrated Solutions Limited (SycamoreNG), a DML company denied allegations that it engaged in practices deemed illegal by the federal government.
The organisation also said it “is not, in any way, manner or form involved with the app, ‘Get Loan’, which we only became aware of, following the report in the news by the FCCPC”.
“We state unequivocally that Sycamore Integrated Solutions Limited has no affiliation with the entity ‘Get Loan’, and their actions are in no way associated with our company.
“The only app owned by us is Sycamore.
“Our preliminary investigations suggest that ‘Get Loan’ was put on the Google Play store by a completely different entity while seeking to ride on the name and good reputation of Sycamore Integrated Solutions Limited.
“We, however, assure all our esteemed customers and users of continuing top-notch service and integrity they have always known Sycamore for, as the protection of our users and customers remains our top priority”.
The company said it would cooperate with the appropriate authorities, including the FCCPC, to “identify and address the impostor responsible for these deceptive practices”.
“As a regulated money lender, we comply with all necessary legal requirements, including those set forth by the FCCPC, to ensure the highest standards of customer protection and data security”, SycamoreNG added.
“We are even more committed to maintaining an environment of transparency and accountability in all our operations”.
The firm promised to enhance its customer support services, secure verification processes, collaborate with the authorities and carry out public awareness against fraudulent activities.
