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Registered loan apps use alternative channels to harass debtors – FCCPC

Bisola David
Bisola David
Loan apps: FCCPC to address rising debt with new policy

The Federal Competition and Consumer Protection Commission have conducted investigations that have shown that some licensed and authorized digital money lenders, also known as loan apps, are using other ways to carry on with their illicit activities.

According to the Commission, the businesses in question are Purple Credit Limited and Sycamore Integrated Solutions Limited.

The FCCPC claimed to have strong proof that these lenders, who are affiliated with businesses that the Commission has recognized and have apps available on the Google Play Store, are using other links to draw in customers in order to continue their illegal business practices of defaming their clients.

The FCCPC stated that its investigations were sparked by a recent uptick in the use of illegal loan recovery techniques and tactics.

In a statement issued on Thursday, the Chief Executive Officer of the FCCPC, Mr. Babatunde Irukera, revealed the Commission’s findings.

“The Commission has detected duplicity by at least two otherwise lawfully registered DMLs on the Commission’s approved list during the course of the Commission’s ongoing investigation and tracking of these illegally running DMLs.

“The nature of the duplicity is that the DMLs, having been authorized, listed on the approved list, and made available on the Play store, as well as cleared for use by other financial services/institutions, also engaged in the use of an alternative channel and method to engage in prohibited conduct.”


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