Digital Money Lenders (DMLs) who use illegal methods such as spamming costumers’ contacts and sharing false information about them to recover their loans operate by directing consumers to illegal websites through which they access their personal information for such purposes, a recent investigation by the Federal Competition and Consumer Protection Commission (FCCPC) revealed.
In a press release signed by Babatunde Irukera, the commission’s executive vice chairman and CEO, on Thursday, the FCCPC said:
“The commission notes a resurgence in the occurrence of prohibited loan recovery methods and practises in the past weeks. The commission’s investigations and continuing surveillance determine 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.
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“The violating DMLs have resorted to the use of Android Package Kit (APK) file formats. The illegal DMLs provide links to customers 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.”
FCCPC’s Press Release
According to the FCCPC, legally registered DMLs on the commission’s approved list were found to be engaging in duplicitous acts, which involved utilising APK to lure borrowers to engage their services on illegal and unregulated platforms.
Sycamore Integrated Solutions Ltd., and Orange Loans and Purple Credit Ltd., owners of Getloan and Camelloan, were listed as some of the companies perpetuating this illegality.
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Consequently, the commission stated that it had permanently delisted both companies along with their loan apps.
Consumers have also been advised to only use loan apps on the Google Play Store, as only those have been subject to regulatory scrutiny, and the technology associated with their apps preclude accessing and downloading private information about consumers.
The post REVEALED: How Illegal Loan Companies Extract Private Information From Customers’ Phones appeared first on Foundation For Investigative Journalism.