FCCPC Warns Against Persistent breach of Violations by loan apps, Urges Immediate Compliance
The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns regarding the growing disregard for its Limited Interim Regulatory/Registration Framework and Guidelines by digital lenders, commonly referred to as loan apps.
In a statement issued by Dr. Adamu Abdullahi, the acting Executive Vice Chairman/Chief Executive Officer, the FCCPC noted a surge in violations as more Nigerians interact with various loan apps.
While acknowledging an increase in defaults that may lead to harassment and defamation tactics by lenders, the commission stressed that engaging in unethical debt recovery methods is unacceptable. Dr. Abdullahi affirmed the commission’s commitment to enhancing enforcement measures to ensure digital lenders adhere to regulations.
He said,
“The solution cannot be to violate the law or utilise unethical recovery methods.” He further stated that the FCCPC plans to engage approved loan apps to establish a more robust compliance framework, additional requirements where applicable, and mechanisms for addressing blacklisted apps.
While acknowledging the growing demand for loans, the FCCPC reiterated its zero-tolerance policy towards consumer exploitation or abusive behavior in loan calculations, default enforcement, and recovery processes.
Dr. Abdullahi urged legitimate operators to promptly comply with regulations to ensure fairness among consumers and competitors.
For unapproved operators, the FCCPC outlined a scrutiny process that may involve law enforcement actions, regulatory prohibitions, and associated consequences. Introduced under the leadership of Babatunde Irukera, the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending in 2022 aims to establish fair, transparent, and beneficial lending opportunities for Nigerians.
Through collaboration with the Joint Task Force (JTF), the registration process addresses concerns related to loan app activities, including illegal operations, rights infringements, and unfair practices.
