According to the Federal Competition and Consumer Protection Commission (FCCPC), any digital money-lending app that is shown to be harassing and defaming users risks being removed from Google Playstore.
This development comes after the Federal Government cracked down on money-lending applications that were not only unlawful and unregistered but also hounded loan defaulters and participated in unethical behavior.
The commission’s CEO, Babatunde Irukera, said during an interview with Arise TV that the commission intended to remove them from the Google Playstore.
This comes after the commission issued many warnings to loan sharks who provide loans with high rates of return and tight restrictions for collection.
Irukera asserted that the commission will reward moral lenders and penalize those who participate in consumer abuse and slander.
The head of the FCCPC highlighted that some lenders prefer to advertise their services to clients through Whatsapp and other channels rather than the Google Play Store.
He claims that the FCCPC is keeping an eye on everything and that any digital lenders who are shown to be deficient will immediately and permanently be removed from the Google Play Store.
He said:
Our concern is if these lenders we’ve approved are still doing it (harassing customers), even if they do it just for once, we will permanently delete them from the Google Play Store. As we discover them, we go after them.
There are things they can do wrong where they will be given a second chance but with respect to harassing consumers or defamatory messages, there will not be a second chance.
Irukera recommended lenders to come up with other strategies for debt recovery, such vetting potential borrowers’ creditworthiness.
He claimed that chronic borrowers make up the majority of those who are defaulting on these loans. Therefore, he suggested that those who have trouble repaying their debts shouldn’t be given the chance to borrow again.
He argued against using libelous remarks to punish those who genuinely have financial difficulties and break their commitment to any loan platform.
It’s noteworthy that the FCCPC started a procedure to formally register and license accepted loan applications a few months ago. A total of 173 applications for digital loans to operate in Nigeria were authorized at the conclusion of the first round of registration.