FG Orders Network Providers, Fintechs To Stop Services To Loan Sharks

FG Orders Network Providers, Fintechs To Stop Services To Loan Sharks

The Federal Competition and Consumer Protection Commission (FCCPC), says it has ordered telecommunication/technology companies (including mobile network operators and digital financial payment systems) to stop providing services to digital lenders who are targets of investigation and operating without regulatory approval.

The Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, said this is to end the activities of money lenders who have found new ways to operate despite being under investigation for their unethical and exploitative practices in the industry.

He said in a statement that some of the lenders have leveraged technology and other financial services alternatives to circumvent account freezing and app suspension orders.

“The commission has entered further orders to Google Play Store to draw down the following apps which were discovered to be created and operating as a circumvention of existing investigative interventions; Maxi Credit, Here4U, ChaCha and SoftPay.”

He added that for apps that are not on the Play Store, it would trace the platforms they are hosted on in order to disable them.

“The commission has ordered all operating payment systems, including Flutterwave, Opay, Paystack and Monify to immediately cease and desist providing payment or transaction services to lenders under investigation or not otherwise operating with applicable regulatory approvals.”