• Tue. May 30th, 2023

FG Orders Fluttervave, Opay, Paystack to Restrict Loan Apps from Payment Services

ByJustice Godfrey Okamgba

Aug 23, 2022

The Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), has ordered Flutterwave, Opay, Paystack, and Monify to stop rendering payment services to loan Apps under investigation.

The Commission said its investigations revealed that the listed Apps – Maxi Credit, Here4U, ChaCha, and SoftPay, were all under investigation for unethical practices and breaches of consumer privacy.

Specifically, it mentioned Soko Loan as the company behind several other Apps being used to circumvent the efforts of the Commission in ensuring privacy.

Reacting to this development, Executive Vice Chairman of the FCCPC, Babatunde Irukera, said: “The information available to the Commission demonstrates that Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names covering a significant share of the digital/online lending market, and one of the most prolific actors in violating consumer privacy, fair lending terms, and the ethical loan repayment and recovery practices.”

“The commission has ordered all operating payment systems including Flutterwave, Opay, Paystack, and Monify to immediately cease and desist providing payment or transaction services to lenders under investigation or not otherwise operating with applicable regulatory approvals.

The Commission has also ordered telecommunication/technology companies (including Mobile Network Operators (MNOs) to cease and desist providing server/hosting, or other key services such as connectivity to disclosed or known lenders who are targets/subjects of investigation or otherwise operating without regulatory approval,” he said.

TechEconomy recalls the National Information Technology Development Agency (NITDA) fined Soko Lending Company Limited (Soko Loans) the sum of N10 million for privacy invasion in August 2021.

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Soko loan app was subsequently removed from the App store following the request of the FCCPC.



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