We decided to share with you the top Loan Apps Banned In Nigeria today. Many illegal loan apps have been banned in Nigeria, and operations have been halted which you will get to see why shortly.
The majority of them are hosted on Google Play Store or Apple Store due to repeated data privacy violations and constant shaming and slander of its borrowers.
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Reasons Why Illegal Loan Apps Banned in Nigeria By The Federal Government
The Nigerian government has finally responded to the issues and concerns posed by illegal loan apps and loan sharks operating in the country by banning several of their operations. These include individuals that have turned themselves into a threat by violating their customers’ data privacy and sending shaming and libelous communications to borrowers, their family members, and their phone connections on a regular basis.
The Federal Government raided the offices of illicit digital lenders in Lagos metropolis about a week ago, shutting down their offices and, as a result, their operations due to claimed consumer rights violations. Many of the lending applications that have been banned in Nigeria are operating without a license from the Central Bank of Nigeria or being registered with the Corporate Affairs Commission (CAC).
The Federal Competition Consumer Protection Commission (FCCPC) and the Federal Bureau of Investigation (FBI) conducted the operation.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC), the Nigeria Police Force (NPF), and the National Information Technology Development Agency (NITDA) (NPF).
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Why FCCPC Bans Acceptance of New Applications By Loan Apps Without Regulatory Assessment
The FCCPC also prohibits loan apps from accepting new applications without first undergoing regulatory review.
The agency also made it illegal to accept and submit new online banking and lending applications without first undergoing regulatory review and approval.
Babatunde Irukera, Executive Vice Chairman/Chief Executive Officer of the FCCPC, announced the decision to ban these illicit loan apps in a statement to the Joint Regulatory and Enforcement Task Force.
The decision, he said, is in response to the Inter-Agency Joint Regulatory and Enforcement Task Force’s action last Friday, which resulted in the closure of some internet banks.
“In fulfillment of an Order of the Federal High Court secured by and given to the FCCPC, the JRETF executed a search and seizure Order on some digital money lenders,” according to the statement.
What are the Top 14 Loan Apps Banned in Nigeria
Nigeria’s Top 14 Loan Apps Have Been Banned
The top 14 lending apps that have been prohibited in Nigeria are listed below. These apps’ operations in Nigeria have either been halted or their apps have been banned and withdrawn from both the Google Play Store and the Apple Store. Some, however, that have been outlawed across the country are still operating under the Google Play Store, swindling and deceiving naïve Nigerians.
1. The GoCash Loan App Has Been Banned
2. The OKash Loan App Has Been Banned
3. The EasyCredit Loan App Has Been Banned
4. The Kashkash Loan App Has Been Banned
5. Speedy Choice Loan App has been Banned.
6. The EasyMoni Loan App Has Been Banned
7. Sokoloan Loan App Has Been Banned
8. The LCredit Loan App Has Been Banned
9. The 9ja Cash Loan App has been suspended.
10. The Gotocash Loan App has been suspended.
11. ForNaira Loan Has Been Banned
12. The Ease Cash Loan App has been Banned.
13. The Cash Wallet App Has Been Banned
14. BorrowNow Loan App Has Been Banned
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We highly advise all Nigerians to avoid doing business with or borrowing money from any of the loan apps listed above. They’re unlawful, they’re con artists, the lending apps are phony, and they’re allegedly violating client data privacy on a regular basis.
“Sokoloan is the parent company of GoCash,” explains security consultant Dave Fadiya.
“They don’t provide second chances; they’re the worst loan house I’ve ever heard.”
The bottom line is that they threaten to fire their employees when they don’t pay their salary, according to one of their employees who is close to a friend of his. “The Chinese are unconcerned.”
It’s widely assumed that the owner of the Sokoloan lending app and its parent firm is also the owner of GoCash, two loan apps that have been outlawed in Nigeria.
“I borrowed N8000 from GoCash to pay back N12,100 in 7 days and I have paid N7000 remaining N5,100 to balance,” another client told Us about this threatening loan app. Serial humiliating and threatening messages have been sent to me.
“As part of the operation, the JRETF, in collaboration with the Nigeria Police Force and the bailiff of the Federal High Court, searched the locations of money lenders, extracted vital evidence, and in some cases prevented or restricted further activities.”
“In addition to the physical operation described above, the Commission entered and served Orders on several financial institutions freezing or halting activities of specific accounts utilized by some money lenders to conduct implicated business or transactions under investigation.”
“Furthermore, the Commission entered and served broad orders on Google LLC (Play Store) and Apple Inc. (App Store) to compel the withdrawal of particular apps where evidence has been found of unlawful activity or usage of the app in violation of consumers’ rights.”
“The Commission’s Order also forbids the receipt and presentation of new applications for the same purpose without first undergoing regulatory review and approval.”
“In the meantime, the Commission warns all enterprises that were the subject of regulatory intervention on Friday, March 11, 2022, to stop compounding interest and refrain from the loan repayment/collection activities that are the subject of this investigation.”
Loan Apps banned in Nigeria should be shut down.
“Violators will be prosecuted to the full extent of the law, including prosecution, without the option of administrative regulatory settlement, if any of these enterprises continue in any of this activity, or the Commission gets reliable evidence of such.”
“The Commission’s Orders have no bearing on existing borrowers repaying any legitimate loans under fair and acceptable terms and conditions, or on any modifications to previous terms and conditions that are deemed onerous, inconsistent with prevailing law, or inconsistent with general principles of transparency and fairness.”
Features, Violations of Fraudulent Loan Apps Banned In Nigeria
In Nigeria, features and violations of fraudulent loan apps have been banned.
“We discovered that the majority of these businesses are based in the same location.” “We also discovered that many of them are run by the same person,” the FCCPC chief stated.
“They are not Nigerian firms; they do not have a Nigerian address; they are not registered with the Corporate Affairs Commission in Nigeria; and they do not have a business license.”
Irukare cited the FCCPC’s actions, stating that the commission secured a court warrant to conduct a “search and seizure.”
The commission has written to worldwide app firms, requesting that the loan companies’ apps be stopped down, he added.
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