FCCPC Threatens Sanctions as Loan Apps Continue to Harass, Blackmail Customers
- Loan app owners in Nigeria have continued to harass their customers and their contacts despite warnings by the FCCPC
- The FCCPC, through its acting chairman, has stated that steps are being taken to tackle this issue and sanction defaulters
- The commission reiterated its commitment to ensure legal and ethical operations in digital lending
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The Federal Competition and Consumer Protection Commission has announced its intention to take action against loan apps that engage in customer harassment.
According to the commission, numerous complaints have been received from Nigerians regarding the harassment tactics employed by these loan providers.
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This follows several efforts by the FCCPC to register and approve legal loan apps with proper guidelines for operations.
The commission had also asked Google to remove the 18 loan apps from Playstore for violation of its guidelines.
FCCPC to rein in loan apps' harassment tactics
According to BBC, the commission's acting chairman, Adamu Abdullahi, has stated that steps are being taken to tackle this issue.
Abdullahi said:
”It would soon be history in the country that online platforms that many people know as loan sharks, where some Nigerians access money quickly to solve urgent issues.”
In March, the Nigeria Data Protection Commission announced an investigation into more than 400 cases of privacy breaches related to online loan apps.
The commission emphasized that its investigations have uncovered significant intrusiveness by these apps.
Additionally, NDPC advocates for a ban or restriction on mobile numbers associated with lenders who have breached their customers' privacy.
It stated:
“They generally violate the principles of data protection and privacy because they have access to contacts, pictures, messages, etc. of data subjects."
Speaking on the matter, Olumide Adesina, a financial analyst, told Legit.ng that the harassment of customers by loan apps in Nigeria is alarming and unethical.
He said:
"These apps often resort to aggressive tactics, incessant calls, and messages, causing immense stress and financial strain on borrowers. Many operate with little regulation, exploiting vulnerable individuals who turn to them in times of need. It's imperative for authorities to step in, enforcing stricter regulations to protect consumers from predatory practices."
He added that users should be cautious and informed about the risks associated with these apps, opting for reputable lenders and seeking financial assistance from more transparent sources.
On its part, the FCCPC reiterated its commitment to ensure legal and ethical operations in digital lending.
Full list of FCCPC, CBN-approved loan apps
In related news, Legit.ng reported that the FCCPC had issued a new list of 154 companies granted full approval to operate loan apps in Nigeria.
Earlier, the FCCPC delisted the approved companies for 'clean up.' After adding apps each firm owns under its approval list, the newly released list is more detailed.
The list of the apps associated with the firms will let customers identify the companies behind the apps they use and also reduce incidents of app duplicity by the companies.
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Source: Legit.ng
