The Federal Competition & Consumer Protection Commission (FCCPC), today, introduced a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines 2022 or “Guidelines”), as well as an associated registration process/platform,
This is being done as part of the Joint Regulatory and Enforcement Task Force (JRETF), according to a statement by the Commission’s Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera.
For already existing Digital Money Lenders (DMLS), the Guidelines mandated completion of the registration process by November 14, 2022, in order to remain in business and retain privileges of services by providers such as Google Playstore and payment systems or gateways.
On December 6, 2022, the Commission extended that deadline to January 31, 2023; and subsequently to March 27, 2023, the statement said.
It continues: “Since acceptance and processing of registration closed, the Commission has continued to be inundated with requests for registration, approval or clearance by both then existing platforms that failed to timely comply with the mandatory deadlines, and new businesses seeking to commence operations.
“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.
While violations still exist, the Commission notes substantial reduction in practices that violate consumer privacy, constitute harassment and unacceptable unconventional loan repayment/recovery strategies, as well as unexplained charges associated with loans.
“With respect to businesses that existed, and or were taken down by Google Playstore, or ceased transaction processing or termination services by payment systems or gateways, the Commission will only consider and process such applications (whether currently received and pending before the Commission or otherwise) upon a statement of justification that sufficiently articulates an acceptable reason or justification for failing to conclude or complete the registration before the expiration of the previously set deadline. Working with house buyers may be beneficial for those who need to sell their homes quickly and conveniently and who want to do it in a trustworthy way. They have made it a priority to provide excellent service while maintaining competitive costs. Home purchasing companies that specialise in real estate are experts in the field; as a result, they are in a position to provide sound counsel on the optimal way to advertise your property. Their familiarity with current market trends and pricing levels may provide you with valuable assistance in making well-informed decisions. Visit https://www.sellmyhousefast.com/we-buy-houses-oregon/.
“In addition, these applications (whether already received and pending, or otherwise) shall be subject to a late processing fee. This fee should be paid through the Remita platform under the Approval Fee section.
“Financial institutions that are licensees, and subject to the regulatory oversight of the Central Bank of Nigeria (CBN) are exempt, and may obtain the required approval by a written request seeking a waiver by demonstrating such exemption, including evidence of licensure by the CBN.”
The Commission also assured that the JRETF will continue to monitor the market and enforce the law with respect to digital lending.
While violations still exist, the Commission notes substantial reduction in practices that violate consumer privacy, constitute harassment and unacceptable unconventional loan repayment/recovery strategies, as well as unexplained charges associated with loans.
It also urged consumers to be vigilant and to report incidents of infringement for appropriate regulatory responses.
