Consumer Rights Organization Accuses Several Money Lenders of Unethical Practices, Urges FCCPC to Sanction Platforms

Citizens’ Gavel, a non-governmental Nigerian organization has accused some money lenders in the country, of engaging in unethical practices, urges the Federal Competition and Consumer Protection Commission (FCCPC) to impose sanctions on such platforms.

The consumer’s rights group lodged a formal complaint, disclosing that these lenders are employing several unprofessional and illegal means to retrieve loans, which include death threats, cyberbullying, and defamation.

In a statement signed by its Communications Associate, Ms. Rachael Adio, Citizens’ Gavel urged the FCCPC to collaborate with stakeholders such as the Central Bank of Nigeria (CBN) and National Information Technology Development Agency (NITDA) to thoroughly address alleged abuse and unethical practices of unregistered and unlicensed digital money lenders in the country.

Part of the statement reads,

“Citizens’ Gavel has identified a disturbing trend where unlicensed digital money lenders employ crude, unprofessional, and illegal means to coerce customers into settling outstanding debts. This coercion involves criminal defamation, harassment, cyberbullying, cursing, cyberstalking, issuing death threats, and breaching data privacy rights. With over 600 complaints received against these entities, our investigations have meticulously pinpointed 30 companies engaged in unethical practices.

“The petition emphasizes the importance of the FCCPA 2018, the cornerstone legislation for regulating competition and safeguarding consumer rights in Nigeria. Despite these regulations, loan apps continue to engage in unethical conduct, including defamation and unfair business practices. Citizens’ Gavel implores the FCCPC to collaborate with stakeholders such as NITDA, CBN, and NDPC to comprehensively address the abuse and unethical practices of unregistered and unlicensed digital money lenders.”

The organization further disclosed that it had compiled a comprehensive report, which includes evidence of defamation and Corporate Affairs Commission search reports.

Citizen’s Gavel which uses digital technology to automate the pace of justice delivery in the Nigerian legal sector, to increase the pace of justice delivery through access to justice, digital technology, and citizens’ engagement, has urged for more strict laws to protect consumers from unhealthy lenders.