Orange Loan, Purple Credit, Sycamore Integrated, Named as Illegal Money Lending Apps Used In Harassing Borrowers

The Federal Competition & Consumer Protection Commission (FCCPC) has identified registered and unregistered Digital Money Lenders (DMLs) devising new methods to harass individuals who have borrowed money from them.

Some of the registered companies still harassing their customers include Orange Loan and Purple Credit Limited; and Sycamore Integrated Solutions Limited.

The Commission also stated that the unregistered DMLs still making use of prohibited loan recovery practices, have devised a new means of providing services to people, while also harassing them even after being taken off the Google Playstore.

This was revealed in a statement released by the Chief Executive Officer of the FCCPC, Babatunde Irukera, on Thursday, where he revealed that the unregistered DMLs have adopted the use of Android Package Kits (APK) file formats.

The Commission had earlier removed some of these DMLs from the Playstore violating the Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022, as well as for their unsavoury methods of loan recovery.

“The Commission notes a resurgence in the occurrence of prohibited loan recovery methods and practices in the past weeks. The Commission’s investigations and continuing surveillance demonstrate that the vast majority of the resurging infringements are not by otherwise approved/listed DMLs approved to be on Playstore and other financial services providers.

“The violating DMLs have resorted to the use of Android Package Kits (APK) file formats. The illegal DMLs provide links to consumers to visit unregistered websites using their Android devices/phones. In the course of that interaction, consumers’ private information that is otherwise protected and prohibited from access or download by DMLs or their apps is accessed and downloaded. This conduct is prohibited by sundry laws, particularly relevant data privacy protection instruments, and more specifically, the Limited Interim Regulatory/Registration Framework & Guidelines for Digital Lending 2020 of the Commission.

“In the course of the Commission’s continuing investigation and tracking of these illegally operating DMLs, the Commission has discovered duplicity by at least two otherwise legally registered DMLs on the Commission’s approval list. The nature of the duplicity is that the DMLs having been approved and placed on the approved list and Playstore, as well as cleared for services by other financial services/institutions, as an alternate channel, and method of engaging in prohibited conduct, also engaged in the use of APK to attract borrowers to a process and practice that is illegal and unregulated.

“The companies or apps so far identified, and for which there is supporting evidence of this malfeasance are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited. They are the owners of “Getloan” and “Camelloan” respectively, and occupy Nos. 1 and 65 on the Approved List of the Commission, which is available on the Commission’s website,” the statement read.

As such, the Commission stated that the companies have been delisted and the apps have been taken off the Playstore permanently.