Finally, FG Commences Probe of Sokoloan, LCredit, Other Loan Sharks Over Breach of Customers’ Data Privacy

• The probe of online loan sharks has commenced according to the director-general, National Information Technology Development Agency, Kashifu Inuwa
• Recall that loan sharks like Sokoloan, NowCash, Lcredit, 9Credit among others have been accused of defaming their customers characters
• According to some of their defamed customers, it is necessary for the FG to do something about the loan sharks

Following the excesses of online loan sharks, the federal government has begun a probe over their alleged breaches of customers’ data privacy.

This was disclosed by the director-general, National Information Technology Development Agency, Kashifu Inuwa, Punch Newspaper reports.

He disclosed that the agency was working with the Nigeria Police Force and other relevant agencies to investigate several lending platforms, popularly called loan shark platforms.

He said this while addressing journalists ahead of the National Privacy Week 2022.

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“We are working with relevant agencies to make sure we address that challenge because it is not only NITDA’s mandate that governs everything. When you talk about any financial services, it is the CBN. When you talk about general complaints, there is a commission for that. But NITDA plays a critical role because of the breach of data privacy.

“We have sanctioned some of them. We are working with the Nigerian police, investigating many of them. We are working to address the challenge.

However, Nigerians online have continued to share painful stories over loan apps.

Speaking on his plight, Sunny Chuckwukamadu Arthur wrote:

"Personally, I need justice for deformation, character assassination and unlawful invasion of my privacy and to ensure that the activities of these loan apps are well regulated."

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Meanwhile, a group dedicated to the eradication of loan apps has revealed that most loan companies in Nigeria are owned by Chinese people.

The group, Mobile Loan Apps Debt Victims in Nigeria, wrote:

"From our just concluded research on the existence of this online apps. We have discovered that most of these apps are mostly contract or franchise jobs given to our Nigerians over here. The original owners and financial sponsors are the Chinese, but not living in Nigeria.

"Our Nigerians who works with them uses these apps as side hustle businesses/jobs. Most of the agents who troubles you via phone work from their own home! This is because their office is online!

"All these addresses you see attached underneath their names are addresses of other legit companies but not the app. We were told some legit organizations run it as a side hustle in their various company after signing partnership deal with these Chinese via the internet. This is where you might be able to see an agent with head sets over their head and seated in an office. Physically from the outside, viewing an organization involved in this, you won't see the company having any traces of online loan app, but inside; they are representatives of a particular app."

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Federal government to prosecute Sokoloan, NowCash, others over privacy abuse

Recall that Legit.ng had reported that some federal government agencies have resolved to commence investigations of rights violations in money-lending industry.

This was disclosed in a statement by the Federal Competition & Consumer Protection Commission (FCCPC). The agency revealed that the investigation will be carried out in conjunction with Independent Corrupt Practices Commission (ICPC) Economic and Financial Crimes Commission (EFCC) National Information Technology Development Agency (NITDA) National Human Rights Commission (NHRC) and Central Bank of Nigeria.

According to many Nigerians who have fallen victims of some of these companies, in efforts to recover their money, some of these loan companies employ illegal means to force customers to repay their loans, including blatant lies and threats.

Source: Legit.ng