It is very important to know if a loan company is approved or licensed by the Central Bank of Nigeria, before you deal with them. In this article we will be discussing about the Kashkash, if it is approved by CBN or not.
On Friday, March 12, the federal authorities conducted raids of “illegal” digital loan companies based in Ikeja, Lagos, for alleged violations of consumer rights.
Together with the Independent Corrupt Practises and Other Related Offences Commission (ICPC), the National Information Technology Development Agency (NITDA), and the Nigeria Police Force (NPF), the Federal Competition Consumer Protection Commission (FCCPC) spearheaded the operation.
Some of the affected businesses are GoCash, OKash, EasyCredit, Kashkash, Speedy Choice, Easy Moni, and Sokoloan.
FCCPC executive vice chairman Babatunde Irukera told reporters the raid was carried out in response to customers’ complaints of financial institution malpractices.
He claimed that clients had complained that banks had invaded their privacy in an effort to collect past-due debts.
According to him, the agency has been looking into the claims since 2020.
A long time ago, this data collection began. Moneylenders increased around the time the country went into lockdown in 2020 owing to the pandemic, according to Irukera.
Irukera at one of the supposedly “illegal” online loan establishments
People needed little simple loans because of the lockdown caused by the pandemic. However, after a while, we started receiving complaints regarding lenders’ illegal practises.
We gathered a lot of data at the conclusion of last year. The FCCPC convened a meeting with other important agencies, and they agreed to work together to investigate these companies.
According to Irukera, many are worried about having their personal information disclosed in the process of recovering their debt.
“Secondly, the interest rate looks unethical in the context of lending. We were really looking for those two things,” he stated.
According to Irukera, the agency has been keeping tabs on the companies’ actions for months, and it has proven difficult to pinpoint where exactly they are based.
According to his research, the loan companies were not based in Nigeria and had no presence there.
We discovered that the majority of these businesses are headquartered in the same building. The FCCPC director added, “We also discovered that many of them are actually operated by the same person.”
In the words of the Corporate Affairs Commission of Nigeria: “They are not Nigerian companies, they have no address in Nigeria, and they are not registered in Nigeria with the Commission, and they have no licence to operate.”
Irukare mentioned that the FCCPC got a court warrant to carry out a “search and seizure,” which was a significant action conducted by the commission.
According to him, the commission has asked international app developers to remove the loan businesses’ apps from their respective app stores.
“In addition to what you are seeing here today, the FCCPC has also issued multiple orders today,” he said.
Two of them will be given to the app shops Apple and Google operate. In order to prevent further victims, we have requested that they remove the apps of these companies.
Second, some of the orders have been sent to financial institutions with a request to freeze the accounts of those involved.
It’s taken us a while to catch these folks because, as I’ve mentioned before, not all moneylenders are doing anything wrong.
“It doesn’t mean that the people we are proceeding against today are the only ones, but these are where we have information now and want to start with them.”
The head of the FCCPC has stated that the commission will limit the operations of individuals found guilty and freeze their accounts. He strongly discouraged others from doing business with them.
Is Kashkash Approved by CBN?
No, Kashkash is not approved or licensed by CBN, because of it’s alleged violations of human rights. According to our research, Kashkash is not a Legit Company, you’re advised to avoid the lending company.
Is Kashkash Loan Legit or Scam?
Kashkash is a scam and not a legit company you can associate with, because it is not registered with the Central Bank of Nigeria (CBN).