- The federal government has revealed that digital lenders who wish to continue operating in Nigeria must meet some certain conditions
- According to the FG, the companies have agreed to cease and desist from messaging contacts of borrowers or defaulters
- This will be seen as victory by thousands of Nigerians who have been victims of these unscrupulous loan sharks
Thousands, if not millions of Nigerians can now heave a sigh of relief following the Federal Competition and Consumer Protection Commission (FCCPC)'s recent statement.
According to FCCPC, loan sharks operating in Nigeria have accepted to meet some certain conditions if they wish to continue operating in Nigeria.
Babatunde Irukera, executive vice-chairman of the commission, disclosed this in a statement issued on Monday, April 4.
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“Some of the moneylenders under investigation, or whose bank accounts have been frozen, and others, have approached the Commission and expressed a desire to cooperate and assist the Commission regarding the investigation under the Commission’s Investigative Cooperation/Assistance Rules and Procedure 2021 (https://bit.ly/3DFBXyF),” the statement reads.
“They seek benefit under Rule 4 in exchange for cooperation, assistance and compliance under Rule 3. As a condition of acceptance into the cooperation/leniency framework, some of the moneylenders have been required to, have agreed, and executed applicably.
“Declarations enforceable under S. 153 of the FCCPA to immediately and forthwith: Cease and desist from contacting, including by text messages, people in contact lists/third parties of borrowers or defaulters.
“Discontinue further abusive, coercive and inappropriate language in communication with loan defaulters or borrowers. Provide a mechanism for transparency regarding loan repayment fees, default or late payment charges as well as interest calculation to the Commission.
“The mechanism must include an open, accessible and responsive feedback and dispute resolution framework that complies with fair lending and loan recovery principles as well as acceptable regulatory standards for reconciliation of disputed balance calculations and complaint resolution.”
Federal government to prosecute Sokoloan, NowCash, others over privacy abuse
Recall that Legit.ng had reported that some federal government agencies have resolved to commence investigations of rights violations in money-lending industry.
This was disclosed in a statement by the Federal Competition & Consumer Protection Commission (FCCPC). The agency revealed that the investigation will be carried out in conjunction with Independent Corrupt Practices Commission (ICPC) Economic and Financial Crimes Commission (EFCC) National Information Technology Development Agency (NITDA) National Human Rights Commission (NHRC) and Central Bank of Nigeria.
According to many Nigerians who have fallen victims of some of these companies, in efforts to recover their money, some of these loan companies employ illegal means to force customers to repay their loans, including blatant lies and threats.