FCCPC recommences registration of DMLs

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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