FCCPC Announces 80% Decline in Loan App Harassment, Reflecting A Notable Improvement in Consumer Protection
The Federal Competition and Consumer Protection Commission (FCCPC), recently announced an 80% decline in instances of harassment linked to loan applications, reflecting a marked improvement in consumer protection.
This was disclosed by the Executive Vice Chairman of the commission, Babatunde Irukera, during a strategic media engagement organized by the FCCPC in Abuja on Thursday.
Mr. Babatunde emphasized the Commission’s commitment to eliminating defamatory messages and intrusions into individuals’ privacy, aiming for a more ethical lending environment.
In his words,
“Some of the lenders used to tell us that when we call a borrower now, they send us your photograph and a statement by FCCPC but that is not right. But I tell them, tell your problems to God, my mandate is to protect consumers but I understand that we also have a mandate in protecting consumers to preserve business.
“If we allow businesses to die, it is a failed approach to consumer protection. Nigeria is struggling with digital lending. This is a struggle that is not isolated to us alone. India, Kenya, Brazil, Ghana, and Uganda are still struggling in digital lending. Some of these countries are taking lessons from what we have done”.
Mr. Babatunde however disclosed that there were still several loan platforms engaging in unethical lending practices, and he disclosed that the commission would not relent in imposing a ban. He further noted that despite the significant development recorded so far, there is still more to be done.
As a significant amount of loan apps continue to proliferate in Nigeria with unethical lending practices, the FCCPC in collaboration with Google Play store has on countless occasions delisted these apps.
This is coming after the federal government of Nigeria in July this year, announced plans for an aggressive nationwide clampdown on unapproved or unregistered loan apps, and has since delisted a number of them operating illegally.
Despite cases of unethical practices by these apps, reports reveal that 27% of Nigerians across income categories still continue to turn to these platforms, due to the high inflation rate which has affected the cost of living.
