The Federal Competition and Consumer Protection Commission (FCCPC) has taken decisive action against unregulated digital loan apps by instructing Google to remove 18 such apps from the Google Play store.
According to the commission, these apps have been operating without the necessary regulatory approval or have been found to be in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022. As per the Guidelines, only digital money lenders with written approval from the FCCPC, indicating regulatory scrutiny and compliance, are permitted on the Play Store.
In a list of the identified apps released on Wednesday, the FCCPC stated, “Accordingly, the Commission has entered a further order requiring Google to immediately remove, withdraw, or drawdown the following: Getloan, Joy Cash-Loan Up to 1,000,000, Camelloan, Cashlawn, Nairaloan, Eaglecash, Moneytreefinance Made Easy, Luckyloan Personal Loan, Cashme, Easynaira, Swiftcas, Crediting, Swiftkash, Hen Credit loan, Nut loan, Cash door, Cashpal, and Nairaeasy gist loan.”
Emphasizing the importance of compliance with its guidelines, the FCCPC underscored that all digital money lenders must adhere to the regulations and any failure to do so would be deemed a violation of the law. Consequences for infractions or infringements could include permanent delisting and prohibition from the Play Store, as well as possible law enforcement action, including prosecution.
This move by the FCCPC is part of its ongoing efforts to curb the activities of unapproved loan apps that have been operating in the digital lending space and harassing Nigerian consumers. Notably, on July 20, 2023, the commission had already delisted some registered digital money lenders for non-compliance with its regulations.
By taking a tough stance against unregulated digital loan apps, the FCCPC aims to protect consumers from potential exploitation and maintain a fair and transparent digital lending ecosystem. The action also sends a strong signal to other digital money lenders, encouraging them to comply with the necessary regulatory requirements to operate in Nigeria.
