Due to "escalating unethical, rude, and unscrupulously exploitative tactics in the business," the Federal Competition and Consumer Agency have mandated that Google Play remove four money loan companies from its platform.
Money lending companies Maxi Credit, ChaCha, Here4U, and SoftPay, are affected, according to a statement issued by the commission's chief executive officer, Babatunde Irukera.
Mr Irukera issued the directive on Thursday during a law enforcement operation in the Ikeja neighborhood of Lagos.
At least seven lending firms, including Soko Loan, were searched in an investigation he coordinated in March to address a "potential infringement" of consumer rights.
According to the head of the commission, several lending organizations under investigation, such as Soko Loan, "have invented strategies to lean on technology and other financial services alternatives to avoid account freezing and app suspension orders."
As a result of today's actions, the Commission anticipates a significant drop in these improper behaviors.
Guidelines for Financial Lending Services
According to the release, Maxi Credit, Here4U, ChaCha, and SoftPay were all identified as "money lending applications" that "circumvented previous investigative interventions" by the Commission.
Read: FG limits online loan businesses' mobile payment, telecommunications network access.
To disable apps that aren't available through the Play Store, the Commission is still investigating where they're housed and asking for the public's help.
Flutterwave, Opay, Paystack, and Modify are just some of the payment systems ordered by the Commission to stop providing payment or transaction services to money lending organizations that are either under investigation by the Commission or have applied for authorization from the Commission.
A portion of the statement reads as follows: "The Commission has also ordered telecommunication/technology companies (including Mobile Network Operators (MNOs)) to cease and desist providing server/hosting or other key services such as connectivity to disclosed or known lenders who are targets/subjects of investigation or otherwise operating without regulatory approval."
Mr. Irukera stated that the availability of a legislative framework to encourage "fair, transparent, and mutually beneficial alternative financing alternatives other than traditional lending to consumers" was a positive development.
He elaborated, "It needs the authorization to engage in digital lending; it offers a limited moratorium time for current enterprises to comply to continue in digital lending.
"The Guidelines also mandate various (money lending) service providers in the relevant ecosystem (including banks, access/download platforms or shops, technology providers, and payment systems) to seek regulatory clearance before to offering services."