The Federal Competition and Consumer Protection Commission (FCCPC) has as part of its wide-ranging orders against unlicensed and illegal online money lending banks, has directed them to stop compounding interest and loan collection practices that are presently undergoing investigations.

This is as Nigerians have reacted to its ongoing enforcement exercise across the country against these illegal online banks with their unfair practices with the shutting down of some of these firms.

This disclosure is contained in a press statement issued by the Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera, and seen by Nairametrics.

Irukera in the statement warned that violators of this order will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).

What the FCCPC Chief Executive Officer is saying in the statement

Irukera, however, stated that the order does not include existing borrowers repaying legitimate loans under fair and acceptable terms and conditions or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness.

The statement from Irukera partly reads, ‘’In the interim, the Commission admonishes all the businesses that were subject of regulatory intervention on Friday, March 11, 2022, to cease and desist the interest compounding and loan repayment/collection practices that are the objects of this investigation.

‘’In the event that any of these businesses continue in any of this conduct, or the Commission receives credible evidence of such, violators will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).

‘’The Orders of the Commission are without prejudice to existing borrowers repaying any legitimate loans pursuant to fair and acceptable terms and conditions; or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness. The obligation to comply with the above extends to all operatives, employees or agents of the affected businesses.’’

Meanwhile, some Nigerians have been reacting to the shutdown of these unlicensed, illegal and defaulting online money lending banks by the inter-agency Joint Regulatory and Enforcement Task Force (JRETF) led by the FCCPC.

A Twitter user, Chris accused some people that are supporting the current exercise of taking loans from the listed apps and then want them to be shut down so that they won’t pay.

I guess you took loan from this apps you listed and you simply want them to shut down so that you won’t pay again. Naija I hail una

— Chris (@ferdcrisx) March 14, 2022

Kabiru Ohida asked if the current struggle will see the light of day as he strongly believes that the owners of those companies are strong politicians in government, advising Irukera to fight with wisdom.

Is this struggle going to see the light of the day? I strongly believed that the owners of those companies are strong politicians (cabals) in this Government. Most of them are using the money that is meant to develop this Country. This man ( Irukera) should fight with Wisdom,

— KABIRU S OHIDA (@ohidacbaac) March 14, 2022

A Twitter user, Angel Essell said that one of the listed defaulting firms, LCredit is still on it and are still sending defamatory messages to contacts boasting that government cannot stop them.

Lcredit are still on it ooo
They are still sending Defamatory message to contact
Boosting that Federal Government can not stop them

— Angel Essell (@EssellIfeoma) March 14, 2022

A Twitter user, Lekan Olagbami said that this was the way to go as the loan apps are becoming a source of heartaches and depression to many Nigerians. He said the loans are for just 7 days with very high-interest rates with abnormal daily dues and defamatory messages, adding that they should be regulated or banned.

This is the way to go. The loan apps are becoming a source of heartaches and depression to many Nigerians. The loans are for just 7 days with very high interest rates followed by the abnormal daily dues and defamatory messages. They should be regulated or outrightly banned.

— Leke Olagbami (@LOlagbami) March 15, 2022

Promise lamented that nothing good comes out from Nigeria and that is why other countries see us as bad people. She wondered why people would take loans and not payback.

Always Nigeria
Nothing good comes out
This is why other country sees us as bad people
Why would people take loan and don’t want to pay back, what if it was their business?

— PROMISE  (@HIZZYJOEE) March 14, 2022

Alfred Osuagwu commended the government’s efforts at clamping down on these loan sharks, especially their fraudulent interest rate calculation and terms.

I commend this effort to clamp down on this loan sharks, especially their fraudulent interest calculation and their term which is full of ambiguities.

— Alfred osuagwu (@Fredo4liberty) March 14, 2022

Hirofunshi said that LCredit is the worst of them all, in fact, worse than Sokoloan, asking that special interest should be given to them.

LCredit is the worst of them all. Infact worse than Sokoloan. Special interest should be given to them @lcreditNg

— Hirofunshi (@Hirofunshi) March 14, 2022

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