Online banking Apps including GoCash, OKash, EasyCredit, Kashkash, Speedy Choice, Easy Moni, and Sokoloan were shut
At least seven loan sharks were shut yesterday for illegal online banking and violating the privacy of their customers.
IThe operation was led by the Federal Competition Consumer Protection Commission in conjunction with the Independent Corrupt Practices and other related offences Commission, the National Information Technology Development Agency and the Nigeria Police Force.
According to Sahara Reporters, the affected companies are GoCash, OKash, EasyCredit, Kashkash, Speedy Choice, Easy Moni, and Sokoloan.
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At Sokoloan, which occupied two floors at 21 Opebi Road and was alleged to be owned by Chinese businessmen, the workers refused to open their doors and constrained the FCCPC operatives to break their locks.
Speaking during the raid, the Chief Executive Officer of FCCPC, Babatunde Irukera, explained that customers had accused the financial institutions of violating their privacy in their debt recovery drive.
He said the agency had begun investigations into the allegations since 2020.
He said, “This information started quite a while ago. Some time ago, when the country was on lockdown in 2020 due to the pandemic, we started seeing the rise in money lenders.
“Because there was lockdown due to the pandemic, people needed small easy loan which is understandable. But over a period of time, people started complaining about the malpractices of the lenders, so we started tracking it.
“Towards the end of last year, we gathered quite a lot of information. We started working with some other key agencies and the FCCPC led the meeting where we all agreed there would be a joint effort to look into these businesses.”
According to Irukera, the interest rate charged by online financial institutions appear to violate the ethics of how lending is done.
He further said, “The key two things that were subject of concern were what seems to be the naming and shaming violation of people’s privacy with respect to how these lenders recover their loans.
“Secondly, the interest rate 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.
“So, we started an investigation trying to determine the location of these firms. That has been a very difficult thing. We did that for several months and some of them have moved from one place to the another and we have been visiting these places for months.”
Irukare said the agency had written to global app companies asking them to suspend the operations of the online banks.
He said, “Essentially, what they have is an app, and so we started gathering more information about them. We engaged the public and the people who had been their victims. They gave us more information.
“As we got more information we had enough evidence to convince the court to issue a warrant for us 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. The reason for this is because we wanted to be sure we are hitting at the place we could get many of them.”