The Federal Competition and Consumer Protection Commission (FCCPC) has noted a surge in violations of the existing digital lending framework in the country. The commission is determined to pursue Loan App companies leading these violations due to desperation.
In a statement issued on Monday by Dr. Adamu Abdullahi, its Ag. Executive Vice Chairman/Chief Executive Officer, the FCCPC stated that its strict enforcement against lending violations is pursuant to “Sections 17(a), (e), (g) (h), (I), (m), (5), (x), (v), 18(3), 123, 124, 127, 129, and 130 of the Federal Competition and Consumer Protection Act, 2018 (FCCPA).”
The statement reads: “The Federal Competition and Consumer Protection Commission, as part of the ongoing investigation and monitoring of Digital Money Lenders (DMLS), has observed a surge in violations of the Inter-agency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.
“The Commission acknowledges the increased demand for loans during this time of year, leading to a higher 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,” the statement reads.
It added that in the coming days, “the commission will be engaging approved loan apps regarding a more robust compliance framework, including any additional requirements where applicable, and possible mechanisms for otherwise blacklisted apps.
“The Commission will welcome demonstrated and timely compliance by all legitimate operators to promote and enhance fairness to consumers and fairness among competitors. Concerning operators that do not possess the Commission’s approval, the scrutiny process will include law enforcement action against them, in addition to regulatory prohibition and consequences.
“The Commission reiterates its commitment to ensuring legal and ethical operations in digital lending and encourages consumers to consider/patronize only approved DMLs (list available at www.fccpc.gov.ng).”