FCCPC Freezes Bank Accounts Of 30 Illegal Loan Companies

The Federal Competition and Consumer Protection Commission on Tuesday said it has frozen the bank accounts of over 30 illegal loan companies operating in Nigeria.

The Executive Vice Chairman of the Commission, Mr Babatunde Irukera, said this at a media briefing in Abuja.

The Commission in a joint operation had on March 12 shut down the offices of some illegal online banks.

The Enforcement Team is made up of the FCCPC, Nigeria Information Technology Development Agency, and the Independent Corrupt Practices and Other Related Offences Commission.
Then, the Commission said the order became imperative as it had established inappropriate conduct or use of the application in violation of the rights of consumers.

The Order of the Commission also prohibits acceptance and presentation of new applications for the same purpose without regulatory assessment and approval.

Giving an update on the issue, Irukera said the Commission has ordered Google LLC (Play Store) and Apple Inc. (App Store) to enforce the withdrawal of certain applications belonging to illegal online banks operating in Nigeria.

He added that the FCCPC is currently engaging three major loan companies whose businesses had been affected by its raid.

He said, “The day we conducted the raid, we have some limited information about the bank accounts that some of the loan companies operated.
“All the bank accounts that were provided were immediately blocked but these companies operate multiple bank accounts with multiple names.

“Between the time we raided and now, we have discovered additional 30 accounts and all have been frozen and we will continue to freeze as we discover them.

“I am certain that with the actions that we have taken and the nature of the engagement we are having with the loan companies, at least three of the major ones that their businesses have been severely affected by either our search or the account closure they are modifying.

“It will take some time but I can assure you that the space is changing now.”

It had reported that the rise of unregulated financial intermediaries like loan sharks and other online loan platforms had become a tool of intimidation and infringement of rights of those seeking their service.
Loan sharks and online loan platforms have flooded the Nigerian market providing quick financial assistance to unsuspecting Nigerians

Melody Chinemerem, a student based in Abuja, had told us how her desperation for a quick cash to foot her school bills lured her into the net of GoCash, an online loan platform.

The victim said the loan had a tenure of eight days. The victim suspecting that she was going to default said she called GoCash two days before the repayment date, seeking for extension of the tenure.

But Melody, who is in her twenties, alleged that an agent of the loan platform declined her request and threatened to notify her contacts if she defaults.

“They asked me to pay the money before the due date if no messages will be sent to my contacts to embarrass me. The next day, my friends and people I haven’t spoken to in years were reaching out to me because of a certain message they got from GoCash concerning me.’ she said.

Melody said the next day, she received a message which reads, “Beware that the family of melody Chinemerem Agbo with phone number ‘070255029376’ are ruthless criminals who daily dupe people of their money.

Presently, they are on the run with a company money and are refusing to pay. Be careful of these thieves as they are wanted by the police.”

The next day, another message from them was sent to her contact.

The message reads, “Beware that the family of Agbo are thieves. taking the fathers step is the bastard daughter melody Chinemerem with no 0702502** who duped a company of its money and is on the run be careful of the thief as she is wanted by the police”
The victim added, “In my entire life, I’ve never felt so low and embarrassed. Taking that loan in the first place was the biggest mistake I made. I don’t know why they had to drag my father’s name in the mud, tarnish my family image and paint the situation so negatively.

“I paid the money after two days of the due date and vowed never in my life to take a loan from these online vendors no matter how urgent the situation is”

Miss Mary Ameh, another victim, had narrated her experience with NCash to us.

Ameh said she secured a loan of N10,000 to meet an urgent financial need which she got credited to a few minutes after the request was approved.

Just like the other victim, Ameh’s loan tenure was eight days.

She said on the 7th day, she received a call from one of the members of staff reminding her of the payment.
According to her, she received what she described as ‘the shock of her life’ when her contacts reached out to her following a threatening message sent by NCash.

THE WHISTLER