FCCPC asks Google to remove 18 Digital Money Lenders from Playstore over infractions

*Nigeria’s Federal Competition and Consumer Protection Commission urges Google LLC to remove 18 Digital Money Lenders from Playstore as affected firms have evaded regulatory compliance to reach consumers outside of the Google Playstore

Isola Moses | ConsumerConnect

The Federal Competition and Consumer Protection Commission has entered a further order requiring Google LLC to immediately remove, withdraw or drawdown 18 Digital Money Lenders (DMLs) in the Nigerian FinTech ecosystem, while directing all DMLs to revalidate information earlier supplied to the Commission.

The market regulatory Commission Wednesday, August 2, 2023, said the affected firms had been operating without regulatory approval or in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines).

Mobile payment system in Nigeria

Mr. Babatunde Irukera, Executive Vice-Chairman/ Chief Executive Officer (EVC/CEO) of FCCPC stated the Commission’s move was pursuant to Sections 17(a), (e), (g), (h), (l), (m), (s), (x), (v), 18(3), 123, 124, 127, 129 and 130 of the Federal Competition and Consumer Protection Act, 2018 (FCCPA).

Irukera also recalled the Commission July 20, 2023, had delisted certain otherwise approved and registered Digital Money Lending companies and, or their Applications (apps).

He said by that action, the affected DMLs ceased to operate legally in Nigeria.

The EVC/CEO also  noted the Commission entered an order to Google LLC (Google) to remove same from the Playstore, and prohibited payment gateways or services from providing or continuing services to the affected businesses.

“The Commission as part of its continuing investigation and audit, has identified additional apps operating on the Google Playstore without regulatory approval or in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines), stated he.

Accordingly, the Commission has entered a further order requiring Google to immediately remove, withdraw or drawdown the following apps:

1. Getloan
2. Joy Cash-Loan Up to 1,000,000
3. Camelloan
4. Cashlawn
5. Nairaloan
6. Eaglecash
7. Moneytreefinance Made Easy
8. Luckyloan Personal Loan
9. Cashme
10. Easynaira
11. Swiftcash
12. Crediting
13. Swiftkash
14. Hen Credit loan
15. Nut loan
16. Cash door
17. Cashpal
18. Nairaeasy gist loan

The Commission said it would continue engaging Google to clarify how and why apps that have not received relevant regulatory approvals are available on Google’s platform (Playstore).

“Under the Guidelines, only DMLs that have been subjected to regulatory scrutiny and compliance evidenced by written approval from the Commission are allowed on Playstore.

“The Commission notes that some DMLs have resorted to the use of Android Package Kits (APK) file formats to reach consumers outside of the Google Playstore,” Irukera explained.

Compliance with guidelines mandatory for all DMLs

The FCCPC Executive Vice-Chairman stated that the practice appeared to be a device by some of the DMLs to evade or avoid regulatory compliance.

He also declared: “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.

“DMLs operating by any means or on any platforms whatsoever are hereby required to provide evidence of compliance with the Guidelines within five (5) days from the date of this Release.”

He as well said 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.

The Commission directed that all previously approved DMLs or otherwise must revalidate the information provided to the Commission by filling DL Form 001 and resubmit same to: lenderstaskforce@fccpc.gov.ng.

Irukera stated the “DMLs are reminded that infraction or infringements may lead to permanent delisting and prohibition, as well as law enforcement action, including prosecution.”

He said the Commission reiterated its commitment to ensuring legal and ethical operations in digital lending; and encourages consumers to consider/patronise only approved DMLs (list available at www.fccpc.gov.ng). Feedback and complaint may be forwarded to lenderstaskforce@fccpc.gov.ng, said the Commission.

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