Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) reports a sharp increase in lending app bans. Delisted loan apps have increased from nine to 37, indicating that people are becoming more concerned about how they work in the country, according to the survey.
The FCCPC reported that ultimately approved loan applications increased from 154 to 164, while conditionally approved loan applications decreased from 40 to 38. The commission also said that their list of apps to monitor has risen from 20 to 56.
The research demonstrates that the Google Play Store’s delisted apps are gone forever. This suggests that the commission is severe and that loan applications need more rigid rules.
Swiftkash, Hen Credit Loan, Cash Door, and Joy Cash Loan Up to $1,000,000, Eaglecash, Luckyloan Personal Loan, and others were removed. The delisting process protects consumers from scam loan apps that prey on those in financial need.
The FCCPC has regulated loan apps in Nigeria to ensure transparency and consumer rights. Within weeks, the commission reinstated 154 loan applications and gave them full clearance to operate in the country.
The FCCPC has approved Clan, NextPayday, Aladdin Digital, Kobogo, and Paylater apps. The FCCPC has conditionally approved 40 more lending app companies, raising the total to 194 in Nigeria.
This conditional approval means these companies must meet stringent consumer protection rules. The commission sets high criteria for loan applications to boost business confidence and protect borrowers from harassment.
Read also: Digital lending market in Nigeria grows as more loan apps get approval
Google banned lending apps from gathering user data
Google changed their personal loan app policy in May 2023, which could affect the business. The tech giant updated its Play Store Personal Loans policy to limit loan apps from accessing users’ sensitive data like images, external storage, videos, contacts, precise location, and call records, according to reports.
This came four years after Google introduced new regulations to protect customers from predatory loan apps multiplying in its store. Google’s new policy protects consumers against predatory loan practices that annoy borrowers. Changes took effect on May 31, 2023.
The global commitment to consumer rights and predatory lending is shown through loan app delisting, regulatory measures, and policy improvements.
Many Google Play apps, especially in Africa, seek potential users to allow them access to their devices’ most private data.
Apps claim these details are needed for credit checks or risk assessments. However, some victims have claimed that lenders blackmailed or harassed them using embarrassing or manipulated images from their phone’s contact book.
Nigerian loan apps that use phone numbers illegally to be penalised
FCCPC’s next step
The FCCPC’s watchlist of loan applications is growing, indicating that the government is scrutinizing the industry. To identify and mitigate loan app risks and preserve fair lending, this increased control is essential.
The FCCPC will continue to work with app developers, financial institutions, and consumer advocacy groups to ensure lending apps follow legal and ethical business practices.
The commission will likely promote openness, responsible lending, and consumer understanding of loan app risks and rewards.