FCCPC Express Concerns as Loan Apps Persist in Breaching Its Regulations
The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern about an increase in violations of its Limited Interim Regulatory/Registration Framework and Guidelines by digital lenders, commonly known as loan apps.
In a statement signed by its Acting Executive Vice Chairman/Chief Executive Officer, Dr. Adamu Abdullahi, the Commission highlighted a surge in infractions as more Nigerians are turning to various loan apps. It acknowledged that the growing number of defaulting customers may be leading to resorting to harassment and defamation.
The FCCPC emphasized that, despite the challenges posed by defaulting customers, violating its regulations and resorting to unethical means for debt recovery is not an acceptable option for lenders.
While noting that the Commission would now intensify its enforcement efforts to ensure that the digital lenders are complying with its regulation, Dr Abdullahi in the statement released on Monday, said:
“The Commission understands the increased demand for loans during this time of year, leading to an increased risk of default due to large numbers and typical cash flow challenges and constraints. However, the solution cannot be to violate the law or utilize unethical recovery methods. As such, the Commission is intensifying enforcement efforts and adopting a zero-tolerance stance towards any exploitation of consumers or abusive conduct, whether in balance calculations, loan default enforcement, or recovery processes. In addition, in the coming days, the Commission will be engaging approved loan apps concerning a more robust compliance framework including any additional requirements where applicable, and possible mechanisms for otherwise blacklisted apps.”
The CEO of FCCPC stated that the Commission would appreciate prompt and evident adherence from all legitimate operators to foster fairness for consumers and healthy competition among peers. Regarding operators lacking the Commission’s approval, he mentioned that the scrutiny process would involve legal action, regulatory prohibition, and associated consequences for such entities.
