The Federal Competition and Consumer Protection Commission (FCCPC) has given digital money lenders a five-day ultimatum to demonstrate that they are operating in line with the set guidelines. Additionally, the FCCPC has requested Google to remove 18 digital lenders from its Playstore for violating the guidelines. The commission stressed that adherence to its guidelines is now obligatory, and any failure to comply would be considered a breach of the law.
The 18 delisted digital money lenders 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 emphasized that only digital money lenders with documented approval from the commission are permitted on Playstore.
In response to complaints of harassment, the FCCPC delisted two loan apps from Google Play Store on July 20, 2023. Subsequently, 16 more loan firms were delisted, and Google was directed to delete them too. The Executive Vice Chairman/CEO, Babatunde Irukera, issued the directive, stating that all digital money lenders must adhere to the commission’s guidelines, whether they operate on Playstore or through other means.
The FCCPC observed that some lenders were using Android Package Kits (APK) file formats to reach consumers outside of Playstore, attempting to evade regulatory compliance. Irukera emphasized that compliance with the guidelines is obligatory for all digital money lenders, regardless of their platform or means of operation.
The commission now demands that digital money lenders provide evidence of compliance with the guidelines within five days from the date of the release. Failure to comply may result in permanent delisting, prohibition, and potential law enforcement action, including prosecution.