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All online loan firms have been barred from accessing mobile payment companies or payment systems operators (PSOs) and telecoms networks by the Federal Competition and Consumers Protection Commission (FCCPC).
RELATED: Consumer protection agency begins legal actions against app-based money lenders
The move by government effectively closes the window against online loan operators accused of violating customers rights and the country’s privacy laws.
Executive Vice Chairman/Chief Executive Officer of the FCCPC, Babatunde Irukera, this week in Lagos revealed this when the commission conducted enforcement actions against a loan company known as Soko Lending Limited.
He said “FCCPC has also ordered telecommunication/ technology companies (including Mobile Network Operators (MNOs)) to cease and desist providing server/hosting, or other key services such as connectivity to disclosed or known lenders who are targets/subjects of investigation or otherwise operating without regulatory approval.
“The inter-agency Joint Regulatory and Enforcement Task Force has developed and mutually adopted a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 as the first and interim step to establishing a clear regulatory framework.’’
Telcos and PSOs are to stop providing support that enables the operations of online money lenders carry out their operations that authorities have described as illegal. Online money lenders have gained notoriety as loan sharks.
Telcos includeMTN, Glo, Airtel and 9Mobile while PSOs are the likes of Flutterwave, Monify, Paystack and Opay.
Irukera, said the FCCPC was already working to protect citizens by disabling or diminishing violators’ ability to circumvent regulatory efforts even as he described Soko Lending Limited as a serial violator.
His words: “Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names covering a significant share of the digital/online lending market, and one of the most prolific actors in violating consumer privacy, fair lending terms and ethical loan repayment/recovery practices.”
COVER PHOTO: Executive Vice Chairman/CEO, FCCPC, Irukera
