FCCPC Decries Loan Apps Providers’ Continue Violation of Regulation

The Federal Competition and Consumer Protection Commission (FCCPC) has raised an alarm over what it described as an upsurge in violation of its Limited Interim Regulatory/Registration Framework and Guidelines by digital lenders popularly known as loan apps.

The Commission in a statement signed by Dr. Adamu Abdullahi, its Acting Executive Vice Chairman/ Chief Executive Officer, said the infractions have been on the rise as more Nigerians are now taking loans from the various loan apps. It noted that the resort to harassment and defamation may have been triggered by the rising number of defaulting customers.

It, however, said violating its regulation by using unethical means for debt recovery should not be an option for the 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, 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 FCCPC CEO said the Commission would welcome demonstrated and timely compliance by all legitimate operators to promote and enhance fairness to consumers and fairness among competitors.

On operators that do not possess the Commission’s approval, he said the scrutiny process would include law enforcement action against such, in addition to regulatory prohibition and consequences.