Federal Government shuts down Illegal money lending banks.

The federal government explains why they shut down illegal money lending banks. 

FG announced that these money lenders that didn't register under the Corporate Affairs Commission (CAC) were engrossed in actions that were against the rights of Nigerian customers.

These emerged some months after the government prepared a joint committee to scrutinize rights infringements and unreasonable procedures in the money lending industry and subsequently shut them down.

Mr. Babatunde Irukera, the vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), declared openly That the commission got information about the online money lenders during the COVID-19 lockdown in 2020, which led to many of them coming into existence.

Mr. Babatunde Irukera who supervised a team of investigators and men of the Nigeria Police Force on the enforcement exercise sulked at the naming and upsetting violation of people’s privacy concerning how these lenders repay loans.

He explained that the interest rate charged by these money lenders appears to infringe the ethics of how lending is done. Moving forward, the FCCPC boss said that investigations had disclosed that the loan companies were neither Nigerian companies that didn't register in the country as most of these companies operate from the same place and are conducted by the same person. The list of the online banks affected was GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni.

Back in December, the Federal Competition and Consumer Protection Commission (FCCPC) announced, the joint committee that was arranged by the Federal Government to tackle the infringement of customer rights and unfair procedures in the money lending industry.