The Federal Competition and Consumer Protection Commission (FCCPC) has reminded digital loan app operators of rules of engagements as regards their interactions with customers.
FCCPC, in a statement, today, referred the digital loan app operators to sections 17(a), (e), (g), (h), (l), (m), (s), (x), (v), 18(3), 123, 124, 127, 129 and 130 of the Federal Competition and Consumer Protection Act, 2018 (FCCPA), which empowers the Commission to protect consumers against exploitation, and take necessary actions against individuals or organizations that might want to take unfavourable advantage of Nigerians.
FCCPC’s Acting Executive Vice Chairman/ Chief Executive Officer, Dr. Adamu Abdullahi, said in the statement, that recent investigation and monitoring of Digital Money Lenders (DMLs), revealed an upsurge in violations of the Inter agency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.
He promised that in the coming days, the Commission will be engaging approved loan apps with respect to a more robust compliance framework, including any additional requirements where applicable, and possible mechanisms for blacklisted apps.
He said: “The Commission understands the increased demand for loans during this time of year which has led to an increased risk of default due to large numbers and typical cash flow challenges and constraints. However, the solution cannot be to violate law or utilise 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.”
He reiterated the commitment of the Commission to ensure legal and ethical operations in digital lending; and also encouraged consumers to consider/patronise only approved DMLs.
“Nevertheless, the Commission will welcome demonstrated and timely compliance by all legitimate operators in order to promote and enhance fairness to consumers and fairness among competitors.
“With respect to operators that do not possess the Commission’s approval, the scrutiny process will include law enforcement action against such, in addition to regulatory prohibition and consequences,” he added.
