Nigeria’s Consumer Protection Agency Begins Clampdown On Virtual Loan Platforms

At least seven digital loan companies operating in Ikeja, Lagos, were raided in a joint operation with the Federal Competition and Consumer Protection Commission (FCCPC) leading the team

Nigeria’s Consumer Protection Agency Shuts Down Online Loan Platforms

The sledge hammer of the Federal Competition and Consumer Protection Commission (FCCPC) has descended on some online loan disbursement platforms over alleged exploitation of Nigerians including violation of the rights of consumers.

This happened as the agency led a tax force comprising officers of some military and paramilitary formations to raid

the digital loan firms in Lagos on Friday.

Premium Times reports that “The operation led by the commission’s boss, Babatunde Irukera, was in response to several complaints of malpractices on the part of the lenders”.

At least seven digital loan companies operating in Ikeja, Lagos, were reported raided in a joint operation.

Some of the companies raided were GoCash, Okash, EasyCredit, Kashkash, Speedy Choice and Easy Moni – owned by Blue Ridge operate on the third floor of a four-storey building in the area.

It will recalled that an investigation carried out by Premium Times last December, revealed how these lending companies offered short-term loans to subscribers, but resorted to unprofessional measures of harassment, cyberbullying, and breach of data privacy of their customers who may have defaulted in loan repayment.

Soko Loan, another lending company, that operates in another location in the Ikeja with over 150 employees was also raided and some of its employees protested the seizure of their equipment.

Addressing the press, Mr Irukere said the loan companies rose to prominence due to the economic impact of the COVID-19 lockdown.

“Because people were on lockdown due to the pandemic, people started needing small easy loans which is understandable.

“But over a period of time, people started complaining about the malpractices of the lenders so we started tracking it.

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