Soko Loan Lending company, a quick credit startup, in Nigeria is on the verge of a shutdown months after the National Information Technology Development Agency (NITDA) sanctioned the firm for privacy invasion.

On August 17, 2021, the agency had released a statement informing the public that Sokoloan will be fined N10 million for invading the privacy of Nigerians after accessing their details through the contact of the firm’s app users.

Sokoloan is one of many online lending platforms that send blackmail messages to their users’ contacts, a system that has been penciled down as the major flaw of the loan app market.

NITDA had stated then that the agency will also weigh criminal charges against the directors of Sokoloan, as it liaise with the Nigerian Police Command for advise.

Ripples Nigeria can now confirm that Sokoloan has paid the N10 million fine, and the agency is looking to shutdown the firm, according to NITDA in a phone conversation with this publication.

The agency’s representative, who simply identified herself as Riba, also confirmed to Ripples Nigeria that the case was in court – this comes after this medium reported in August that Sokoloan was trying to beg its way out of the clampdown from NITDA.

Sokoloan currently has over one million downloads, and 137,914 reviews filled with mostly complaints of bad customer service, blackmail allegations, and the firm’s repayment issue that increases interest payment of borrowers.

Ripples Nigeria noticed that the positive reviews were filled with foreign names despite its market majorly used by Nigerians, who were mostly critical in the complaints segment of the app on Google Playstore.

NITDA is also probing 9credit, Palmcredit and other Loan apps operating in the country, as some of them have the same business model of sending unwarranted blackmail messages to their borrowers’ contacts.

It’s not yet known if the victims of Sokoloan will be compensated, but Riba hinted on the possibility of such action being taken.

thesicilian:
They're are closing up shop because of just 10m fine?

thesicilian:
They're are closing up shop because of just 10m fine?

thesicilian:
They're are closing up shop because of just 10m fine?

DoggoneDogg:
Nairaland chronic debtors will be happy to hear this wonderful news



Read na. You nor go die baba

thesicilian:

I'm surprised that as simple as my statement was, it still went right over your head. What part of that comment gave you the impression that I didn't read the article?!

DAVIDMOE:
it may not be because of the fine, but they know there won't be any opportunity for them to steal and tarnish people's image again.

DoggoneDogg:


The part where you assumed they are shutting down "because of just N10m fine".

If you read, you'd see the part where criminal charges have been filed against their directors for invading users privacy - this is the reason for the shut down. Not the fine.

thesicilian:

They are actually "considering" criminal charges, which may not even hold up in court considering the fact that every action the loan app is taking has been authorised by the customer, but I get your point.

I feel pity for these loan companies though, they're trying to do business in a very hostile environment (from both the government and customers). Government should make it easy for them to get their monies back without them having to harass the customers.

thesicilian:

But how then does the government expect the loan apps to get their money back? Will NITDA collaborate with the commercial banks to allow automatic withdrawals from all BVN linked accounts of defaulters in the event that a customer clearly doesn't want to pay?

DAVIDMOE:
They should have a better way to get their money instead of that messages they send. defaming their users is very rude.
When it comes to withdrawing from their defaulters linked account. They do that. however, they resort to defamation when they can't find money in the linked account.

murphyibiam15:
That's the only way they could recover their money from 95% criminally minded Nigerians who take loans with initial intent not to pay or default.

Criminal Nigerians

thesicilian:

But how then does the government expect the loan apps to get their money back? Will NITDA collaborate with the commercial banks to allow automatic withdrawals from all BVN linked accounts of defaulters in the event that a customer clearly doesn't want to pay?

murphyibiam15:
That's the only way they could recover their money from 95% criminally minded Nigerians who take loans with initial intent not to pay or default.

Criminal Nigerians

DoggoneDogg:
By Olalekan Fakoyejo


Source: Ripples Nigeria

lkillbrokehoes:
If you don't use iron hands on Nigerians, they will take you for granted.

that's why I don't blame those aggressive loan companies, why take what you can't pay back in the first place?

it's obvious Nigerians take pride in running people's business down.

lkillbrokehoes:
If you don't use iron hands on Nigerians, they will take you for granted.

that's why I don't blame those aggressive loan companies, why take what you can't pay back in the first place?

it's obvious Nigerians take pride in running people's business down.

lkillbrokehoes:
If you don't use iron hands on Nigerians, they will take you for granted.

that's why I don't blame those aggressive loan companies, why take what you can't pay back in the first place?

it's obvious Nigerians take pride in running people's business down.

DAVIDMOE:
it may not be because of the fine, but they know there won't be any opportunity for them to steal and tarnish people's image again.