By Isaac Asabor
When in November last year the leaderships of the Federal Competition and Consumer Protection Commission (FCCPC), Independent Corrupt Practices Commission (ICPC), National Information Technology Development Agency (NITDA) and the Central Bank of Nigeria (CBN), partnered to address multiple potentially dubious conduct of certain money lenders, otherwise known as loan sharks, not few Nigerians might had thought the collaboration would not yield fruit as they saw it as an exercise in rhetoric. However, contrary to their pessimistic attitude to the partnership, it has in no distant time begin to yield results, particularly from the side of FCCPC as it is unrelentingly pursuing its constitutional mandates as enshrined in Sections 17(a), (e), (g), (h), (i), (m), (s), (x), (y), (z); 123; 124; 127; 129; 130 of the Federal Competition and Consumer Protection Act (FCCPA), 2018.
If there is a Commission that is strongly resolute in fulfilling its statutory mandate, and in that light readily been deploying several regulatory tools to monitor and modify behavior of service providers and manufacturers, it is unarguably the FCCPC under the leadership of Mr. Babatunde Irukera, who is the Executive Vice-Chairman/Chief Executive Officer of the Commission, formerly known as Consumer Protection Council (CPC).
Without doubt, it is in pursuant to the foregoing mandates that FCCPC is legally charged with that the Commission in an operation led by Babatunde Irukera, on Friday raided at least seven digital loan companies, derogatorily known as “Loan Sharks” operating in Ikeja, Lagos, for a “possible violation” of consumer rights. The operation was carried out in response to several complaints of malpractices on the part of the lenders.
Topmost on the kinds of violations held against the digital loan companies is the unethical manner of offering short-term loans to help subscribers meet urgent needs, but resort to unprofessional measures of harassment, cyberbullying, and breach of data privacy of their customers who may have defaulted in loan repayment.
Companies swooped on in the raid cut across GoCash, Okash, EasyCredit, Kashkash, Speedy Choice and Easy Moni, which are all under the management of a conglomerate known as Blue Ridge, and which operates on the third floor of a four-storey building in Opebi area of Ikeja, Lagos.
Ostensibly to disabuse the minds of the workers of the loan companies that their employers were not unjustifiably slammed, Irukera during the operation told them of the purpose of the raid and their rights.
Soko Loan, another lending company, which operates in another location in the area with over 150 employees and some of its employees protested the seizure of their equipment.
As gathered, the operations were carried out by the FCCPC, Independent Corrupt Practices and Other Related Offences Commission (ICPC), National Information Technology Development Agency (NITDA), and the Nigeria Police Force (NPF).
Addressing the press, Irukera noted that the loan companies cashed in on peoples’ collective vulnerability, particularly due to the economic impact of the COVID-19 lockdown.
He recalled, “Because people were on lockdown due to the pandemic, people started needing small easy loans which is understandable.
“But over a period of time, people started complaining about the malpractices of the lenders so we started tracking it.
“Sometime towards the end of last year, after gathering quite a lot of information, we started working with some other key agencies like the EFCC, ICPC, National Human Right Commission, CBN, NCC. And FCCPC led the meeting where we all agreed that there would be a joint effort to look into these businesses.”
Irukera explained that the cause of concern was the naming and shaming of borrowers and violation of their privacy with respect to how the loans are recovered.
“Secondly the interest factor seems to be a violation of the ethics on how lending is done. So those were the two things that we set out to look for,” he said.
Mr. Irukera said it was difficult tracking the loan companies, adding that it took them several months because some of the lenders moved from one place to the other, and added that some of the officials visited the companies daily to be sure of their location.
“We found out that most of these companies operate from the same place. We also found out that many of them are actually operated by the same person,” he said.
“They are not Nigerian companies, they don’t have addresses in Nigeria and they are not registered in Nigeria with the Corporate Affairs Commission and they do not have any license to do their businesses.
“Essentially what they have is an App, and so we started gathering more information, we engaged the public and people who have been their victims gave us more information.”
He said that they presented their findings to the court, and got a warrant to “proceed with an investigation into a search and seizure. And sometime last month, a court issued a warrant and between then and now we were preparing a sting operation which is what you are seeing here today because we want to be sure we are hitting at the place where we could get many of them.”
He explained that the commission has issued multiple orders and two of them are going to vendors, App stores and Google stores where some of these apps are available to shut down the loan apps so that people will not be victimised anymore.
Unarguably applauding FCCP’s leadership for its pragmatic intervention, Bayo Omole said, “In as much as I can say that not all money lenders are operating illegally, I will continue to commend the commission. Though, with the infiltration of dubious ones among them into the system, it will be difficult for the commission to separate the wheats from the chaffs. Thant notwithstanding, the effort of the commission, particularly under Mr. Irukera is commendable.
In his reaction, Elvis Ihemere said, “Loan companies in Nigeria not only send threatening messages but also use customers’ social media contacts to harass them. To me, that unprofessional way of recovering loan is not healthy for the financial sector of the economy”.
According to Mr. Hendrix Igudia, “As more and more people contact FCCPC regarding scam losses, and increasingly large losses, most people have been thinking about the need for the commission to do something. Fortunately, the leadership of the commission is practically doing something, particularly with this raids on dubious digital loan companies. I think the effort of the commission is commendable”.
Smart Akpenvwoghene said, “Before now, the focus of effort from regulators and industry in relation to scam losses is to issue warnings. The raid carried out by FCCPC in collaboration with other stakeholders on unprofessional money lenders is a departure from the past, and it is admirable. I believe if this hardheaded effort is sustained it will reduce this “Shame-the-consumer” approach of recovering loan by shark borrowers. There is clear evidence that shows that loan sharks are increasing, and increasing substantially by each passing day.
To Mr. Jones Ediaghe, particularly as to the raids carried out against loan sharks by FCCPC and others, “A just and effective marketplace requires proper regulation and fair practices by the businesses who participate. So, what the commission is doing is in the right direction as it will lead to better way of recovering loan taken from these questionable lenders. As it seems, FCCPC is more than ever before striving to engender a sane marketplace for consumers and give them a voice”.
