The Federal House of Representatives has resolved to investigate Carbon, Fairmoney, OKash and other lending applications (apps) companies following an increase in complaints of threats to loan payment defaulters.
The decision was reached on Thursday after a member of the House, Ahmed Satomi, moved a motion titled ‘Urgent Need to Investigate Sharp Practices by Unregulated Online Fintech Lending Companies and Abuse of Mobile Digital Loan Apps in Nigeria.’
Satomi said some fraudulent loan apps who are unscrupulous profiteers are affecting many low-income Nigerians. The lawmaker opined that some Nigerians are trapped in the web of sham loan apps due to coercion.
He said low-income earners are swindled by the unscrupulous and unregulated loan apps hosted on Google Play Store by individuals and companies, who took advantage of the economic downturn during COVID-19, which resulted in job loss in the country.
According to him, “The House is disturbed that these predatory lending apps are disguised as platforms where unsuspecting members of the public are promised access to quick loans with no collateral except the provision of a Bank Verification Number.
“The House is also disturbed that such victims are expected to repay loans at astronomical interest rates within three to seven days, as against the 91 to 365 days claim on Google Play store, which has over 83.07 per cent market share in Nigeria.”
The Committee on Banking and Currency, Committee on Financial Crimes, and Committee on Telecommunications have been directed by the House to investigate Carbon, Fairmoney, OKash, and OPay.
Also to be investigated are: LoanMe, LifePurse iLoanPro, PalmCredit, Branch, EasyCredit, NewCredit, CashCredit, LifeLine, and Lumos Loan will also be probed.
The operations of KiaKia, PayLater, Umba, Carbon, FirstNell, SharpCash, iMoneyPlus, , NairaPlus, SharpCredit, MoneyHub, 9jaCash, Henloan and Get Loan will be investigated.
Others on the list are Cashbean, CashMe, QuickCheck, SoftNaira, Care Finance, Newcredit, LairaPlus, OxLoan, New Credit Loan App, Future Cash, NoNowMoney, Cash Mall, NairaLand, Naira9ja, Fundy, Plenty Cash, and Aella Credit.
The investigation is planned to span four weeks, with the committee mandated to report their findings to the lower chamber.
