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FCCPC warns DMLs against violations, customer exploitation

Digital lending

By Tochukwu Bliss, Abuja

The Federal Competition and Consumer Protection Commission (FCCPC), yesterday renewed its warning against rules violations and customer exploitation by digital money lenders (DMLs).

The agency informed that its continuing investigation and monitoring of digital lenders revealed an upsurge in violations of the Inter agency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.

The Commission, in a statement signed by its Ag. Executive Vice Chairman/ Chief Executive Officer, Dr. Adamu Abdullahi, said it understands the increased demand for loans during this time of year, leading 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 said.

To this end, the Commission said in the coming days, it will be engaging approved loan apps with respect to 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 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,” Abdullahi said. 

The Commission also reiterated its commitment to ensure legal and ethical operations in digital lending; and encourages consumers to consider/patronise only approved DMLs (list available at www.fccpc.gov.ng).

Feedback and complaint are encouraged to be forwarded to: lenderstaskforce@fccpc.gov.ng.

…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.

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