ABERRANT DEBT COLLECTION PRACTICES: JANUARY 31ST, 2023 DEADLINE FOR THE REGISTRATION OF DIGITAL MONEY LENDERS WITH FCCPC

Digital Money Lenders

INTRODUCTION

The Federal Competition and Consumer Protection Commission (FCCPC), is primarily saddled with the responsibility of protecting and advancing the interest and well-being of consumers in Nigeria.

THE NITDA SANCTION ON SOKOLOAN

On August 17th 2021, the National Information Technology Development Agency (NITDA) sanctioned an online lending platform, Soko Lending Company Limited (Soko Loans), for privacy invasion, unauthorized disclosures, failure to protect customers’ data and defamation of character. The action was taken after a series of complaints from the public. The Company has imposed a monetary sanction of NGN 10,000,000.

THE INTER-AGENCY

In November 2021, the Federal Competition and Consumer Protection Commission (FCCPC) alongside 5 other agencies, set up an Inter-Agency Joint Task Force to look into the practices of Digital Money Lenders (DMLs) including privacy invasion, failure to protect personal data, data abuses and other aberrant debt collection practices.

STEPS TAKEN

On August 18, 2022, Inter-Agency Joint Task Force, conducted enforcement actions in Lagos with respect to Digital Money Lenders (DMLs) in addition to the enforcement action the task force established a mutually adopted Limited Interim  Regulatory/Registration Framework and Guidelines for Digital Lending, 2022.

In light of the Registration Framework and Guidelines, the Commission commenced the registration of DMLs. By an Order and Notice of the Commission on August 17, 2022, existing DMLS were required to comply within ninety (90) days. The payment gateways used by the DMLs are needed to demand FCCPC Approval from the DMLs to continue to provide their services. In a big step, Google Play has requested digital lenders to provide evidence of their compliance with FCCPC within 30 days from November 16, 2022, or be removed from the platform.

CHECKLIST OF DOCUMENTS TO BE SUBMITTED FOR REGISTRATION AND APPROVAL OF DMLs

  1. A certified copy of the certificate of incorporation of the digital lender;
  2. Evidence of compliance with Form DLG 001 – FCCPC Interim Digital Lending Guidelines Form;
  3. Terms of use;
  4. Privacy policy;
  5. Code of conduct;
  6. Any and all previous defamatory messages sent to customers and any and all new templated messages;
  7. Proof of disciplinary action against erring staff;
  8. A brief description of the business and where relevant, its groups;
  9. Organogram showing the role players, and location of key role players and any operational approving authority;
  10. Name and address of a person within the business who is authorized to accept all the correspondence and accept service on behalf of the business;
  11. Evidence of membership of any trade or professional associations;
  12. Any service level agreements with any service providers with respect to operations but excluding administration;
  13. Proof of tax payments or tax waivers where applicable.
  14. Evidence of all applicable fees associated with service.
  15. Evidence of compliance with Form DLG 002 – Declaration for Digital Lending Businesses in Nigeria.

STATUS OF DMLs

The FCCPC on November, 15th 2022 provided a list of DMLs who has been granted approval and those with conditional approval.

FULL APPROVAL

  1. SYCAMORE INTEGRATED SOLUTIONS LIMITED
  2. TRADE DEPOT 
  3. TAJOW INVESTMENT
  4. BLUE RIDGE MICROFINANCE BANK LIMITED
  5. GROLATECH CREDIT LIMITED
  6. BRANCH INTERNATIONAL FINANCIAL SERVICES LIMITED
  7. BRANCH INTERNATIONAL FINANCIAL SERVICES LIMITED
  8. P2VEST TECHNOLOGY LIMITED
  9. CREDITWAVE FINANCE LIMITED
  10. KEENEST TECH SERVICE LIMITED
  11. FAIRMONEY MICRO FINANCE BANK
  12. ALTRACRED FINANCE INVESTMENT LIMITED
  13. CREVANCE CREDIT LIMITED
  14. MENACRED COMPANY LIMITED
  15. AFROWIDE DEVELOPMENT LTD
  16. RED PLANET NIGERIA LIMITED
  17. AFROFIRST MOBILE AND TECHNOLOGY COMPANY LIMITED
  18. RANKCAPITALS LIMITED
  19. IBS GOLDEN INVESTMENT COMPANY LIMITED
  20. LENDVISERY SERVICES LIMITED
  21. CREDITWAVE FINANCE LIMITED
  22. RENMONEY MICROFINANCE BANK LIMITED
  23. SWIPEBILL TECHNOLOGIES NIGERIA LIMITED.
  24. HOMETOWN FINTECH LIMITED
  25. GIASUN TECHNOLOGY NIGERIA LIMITED
  26. BE RESOURCES LIMITED
  27. ROCKIT LENDERS NIGERIA LIMITED
  28. PIVO TECHNOLOGY LIMIED
  29. YES CREDIT COMPANY LIMITED
  30. FUBRIL CENTURY LIMITED
  31. IRORUN TECHNOLOGIES LIMITED
  32. CSENSE LIMITED
  33. SUPREME HELP COOPERATIVE SOCIETY LIMITED
  34. ORCOM AND ORCOM BUSSINESS SUPORT LIMITED
  35. PAYHIPPO LIMITED.
  36. EASYCHECK FINANCE INVESTMENT LIMITED
  37. QUARK FINANCIAL NIGERIA LIMITED

CONDITIONAL APPROVAL

  1. TRIPPDBASE LIMITED
  2. BLACKCOPPER SERVICE 
  3. OWOAFAR FINTECH SERVICE
  4. PAYLATER HUB
  5. WINDVILLE FINANCIAL NIGERIA LIMITED
  6. AFROFIRST MOBILE AND TECHNOLOGY COMPANY LIMITED
  7. ORCOM AND ORCOM BUSINESS SUPPORT LIMITED
  8. OTP INTERNET TECHNOLOGY LTD
  9. RED HARBOR FINTECH LIMITED
  10. BERYL SPRING GLOBAL LIMITED
  11. HOMETOWN FINTECH LIMITED
  12. AJAX LENDING LIMITED
  13. RACEOVA NIG. LIMITED
  14. LANTANA TECHNOLOGY LIMITED
  15. THE PLATFORM DIGITAL NETWORK LIMITED
  16. ZIPPY CAPITAL LIMITED
  17. NEO-LINK TECHNOLOGY LIMITED
  18. TRIPOBASE LIMITED
  19. BESTFIN NIGERIA LIMITED
  20. POCKETFUEL FINANCE LIMITED
  21. LENDING EDGE LIMITED
  22. TED ROCKET LIMITED
  23. PENAID LIMITED
  24. ALTARA CREDIT LIMITED
  25. NEW CREDAGE NIGERIA LIMITED
  26. LENDHA TECHNOLOGIES LIMITED
  27. DOJA LEMAIRE GLOBAL LIMITED
  28. PAYDAYHUB ONLINE NIGERIA LIMITED
  29. RETAIL BOOSTER LIMITED
  30. FINNEW FINTECH LIMITED
  31. FEZOTECH NIGERIA LIMITED
  32. ORANGE LOAN & PURPLE CREDIT LIMITED
  33. CITADELE CAPITALS LIMITED
  34. FEWCHORE FINANCE COMPANY LIMITED
  35. A1 CAPITAL SOLUTION LIMITED
  36. ONE PAYOUT LIMITED
  37. LINKPARK TECHNOLOGY NIGERIA LIMITED
  38. LIDYA GLOBAL LIMITED
  39. PHOENIX PAYMENT SOLUTIONS LIMITED
  40. RED PLANET NIGERIA LIMITED
  41. KWABA INTERNATIONAL LIMITED.
  42. MAYWOOD LENDING LIMITED.
  43. PRINCEPS CREDIT SYSTEM LIMITED
  44. LINKPARK TECHNOLOGY NIGERIA LIMITED

EXTENSION OF REGISTRATION DEADLINE

In light of the progress made by the Inter-Agency and the need to create a mutual working relationship with the DMLs, the Commission has not extended the deadline to January 31st, 2023, to enable all DMLs to comply with the Order.

Tolulope Oguntade 
Regville Associates
compliance@regville.com
08065111667