FG delists 18 illegal loan apps from Play Store over regulatory infractions

The Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), has again delisted 18 digital lending platforms (DLPs) from the Google Play store for violating registration rules and guidelines.

The affected loan apps are Getloan, Swiftkash, JoyCash-Loan up to 1 million, Camellia, Cashhlawn, Nairaloan, Eaglecash, Moneytreefinance MadeEasy, Luckyloan Personal loan, Cashme, Easynaira, Swiftcash, Crediting, Hen credit loan, Nut loan, Cash door, Cashpal, and Naireasy gist loan.

According to the commission, the 18 digital money lenders that it delisted, and asked Google to delete, were either operating without regulatory approval or in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines).

The FCCPC says compliance with its guidelines was now mandatory and failure to do so was a violation of the law. It noted that only digital money lenders that had regulatory scrutiny and compliance evidenced by written approval from it were allowed on Playstore.

Babatunde Irukera, Executive Vice Chairman/CEO of FCCPC, in a statement, said the commission will continue engaging Google to clarify how and why apps that have not received relevant regulatory approvals are available on Google’s platform (play store).

“Under the guidelines, only DMLs that have been subjected to regulatory scrutiny and compliance evidenced by written approval from the commission are allowed on Play Store

Babatunde Irukera, Executive Vice Chairman/CEO of FCCPC

The commission also called for all existing and approved DMLs operating by any means to provide evidence of compliance within five (5) days from the date of the release and revalidate the information provided by the commission by filling out the DL Form 001 on its website.

“Digital Money Lenders operating by any means or on any platforms whatsoever are hereby required to provide evidence of compliance with the guidelines within five days from the date of this release,” Mr Babatunde said.

Read also: FCCPC approves 173 digital lending platforms, bars illegal loan apps [FULL LIST]

Getloan and Camelloan loan apps re-emerge

Recall that some weeks ago, the FCCPC delisted two loan apps, Getloan and Camelloan, from Google Play Store for harassing Nigerians. It stated that it came to this decision after investigating the apps.

According to the FCCPC, the loan apps were owned by Sycamore Integrated Solutions Limited, Orange Loan, and Purple Credit Limited. However, Sycamore Integrated Solutions Limited has since refuted that claim, and distanced itself from the Getloan app, which it says was an impostor, using its name to operate on the Play Store.

At the time, the FCCPC said, “In the course of the commission’s continuing investigation and tracking of these illegally operating digital money lenders, the commission has discovered duplicity by at least two otherwise legally registered digital money lenders on the commission’s approval list.”

The Commission noted that the companies had also used Android Package Kits (APK) file formats to attract borrowers to a process and practice that is illegal and unregulated.

The two loan apps have now re-emerged among the new list of 18 apps the Commission has directed Google to remove from the Google Play store. According to Babatunde Irukera, all digital money lenders operating on Playstore or through any other format must comply with its guidelines.

He noted that some digital money lenders were relying on APK file formats to reach consumers outside of the Google Play store, to evade or avoid regulatory compliance.

Commenting on a move to sanction more erring apps, Irukera stated, “Compliance with the guidelines is mandatory for all DMLs regardless of whether they intend to be placed on Playstore, operate by APK file formats or any other means for that matter. Failure to comply with the Guidelines is a violation of law and renders any such operation illegal.”

“Also, all existing and approved DMLs providing digital lending services through APK file formats in addition to Playstore, are required to provide evidence that such APK operations are in compliance with the law.”

Babatunde Irukera

Mr Irukera added that Infractions or infringements of its guidelines may lead to permanent delisting and prohibition, as well as law enforcement action, including prosecution.

Read also: Sycamore faults FCCPC’s investigation, distances itself from ‘Get Loan app’