FG shuts online loan firms over illegal, sharp practices

The Federal Competition and Consumer Protection Council (FCCPC) has closed some financial outlets operating
on Opebi Road, Ikeja, Lagos for “possible violation” of consumer rights.

The companies affected are GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni – owned by Blue Ridge which operate on the third floor of a four-storey building in the area.

The agency in a sting operation in collaboration with the Independent Corrupt Practices and other Related Offences Commission, National Information Technology Development Agency, and the Nigerian Police Force, raided these institutions and have them shut.

A customer had earlier complained to the FCCPC over the latter’s sharp practices which made the relevant agencies to swing into action.

Following the complaints, the Chief Executive Officer of FCCPC, Babatunde Irukera, said, made them to commence investigation into activities of the financial outlets, particularly in violation of debtors’ privacy in their debt recovery drive.

Irukera said, “This information started quite a while ago. Some time ago, when the country was on lockdown in 2020 due to the pandemic, we started seeing the rise in money lenders”

“Because there was lockdown due to the pandemic, people needed small easy loan which is understandable. But over a period of time, people started complaining about the malpractices of the lenders, so we started tracking it.”

Irukera said, the companies were in breach of interest rate to their customers which the FCCPC cannot fold its arms to see citizens being exploited.

He explained: “The key two things that were subject of concern were what seems to be the naming and shaming violation of people’s privacy with respect to how these lenders recover their loans.”

“Secondly, the interest rate seems to be a violation of the ethics on how lending is done. So, those were the two things that we set out to look for.”

The FCCPC boss said investigations had revealed that the loan firms were neither Nigerian companies nor registered in the country.

“We found out that most of these companies operate from the same place. We also found out that many of them are actually operated by the same person.

“They are not Nigerian companies, they don’t have an address in Nigeria and they are not registered in Nigeria with the Corporate Affairs Commission and they do not have any licence to do their business,” he stated.