THE Federal Competition and Consumer Protection Commission (FCCPC) has announced the recommencement of registration of Digital Money Lenders (DMLs) under the Inter-Agency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.
The Commission, in a statement, signed by its Executive Vice-Chairman, Babatunde Irukera, stated that the decision to resume registration was a response to requests for registration from both the existing platforms that failed to meet the earlier deadline set by the Commission , and new businesses planning to commence operations.
Irukera stated that the Commission had, as part of the Joint Regulatory and Enforcement Task Force (JREFT), aimed at ensuring the rights of the consumers are not infringed on by digital lending money lenders, introduced a Limited Interim Regulatory /Registration Framework and Guidelines for Digital Lending, 2022, as well as associated registration process/platform.
The guidelines mandated completion of the registration process by November 14, 2022 in order to remain in business and retain privileges of services such as Google Playstore and payment systems or gateways. On December6, 2022, the Commission extended the deadline to January 31, 2023, and subsequently to March 27, same year.
“Accordingly, while the JRETF continues the work of developing a more robust, comprehensive and enduring digital lending regulatory framework, the Commission will resume receiving and approving eligible DML applications, new and previously inexistent businesses, and requests (including those already received and pending) under, and in accordance with the guidelines and existing process,” he added.
The FCCPC boss however stated that businesses that were taken down by Google Playstore, or ceased transaction processing, would only be registered after providing a statement of justification that sufficiently articulates an acceptable reason or justification for failing to complete the registration before the expiration of the previously set deadline.
“Besides, the applications (whether already received and pending, or otherwise), shall be subject to a late processing fee,” he added.
While reiterating the Commission’s commitment to continually monitor the market, and ensure that the rights of the consumers are not violated by the digital money lenders, Irukera however expressed the delight at the ‘substantial reduction’ in practices that violate consumer privacy, constitute harassment and unacceptable unconventional loan repayment strategies, as well as unexplained charges associated with the loans.
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