FCCPC To Sanction Loan Apps Over Harassment Of Customers

The Federal Competition and Consumer Protection Commission (FCCPC) has promised to sanction loan apps over violations of customers’ rights through fund retrieval.

 The Acting Executive Vice Chairman/ Chief Executive Officer of FCCPC Dr. Adamu Abdullahi In Abuja on Monday said the commission has observed an upsurge in violations of the Interagency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.

This is as Abdullahi confirmed that there was an upsurge in the demand for loans, adding that borrowers have defaulted in repayment.

However, he said the licenced fintech do not possess the right to abuse or violate their respective debtors.

“As part of the continuing investigation and monitoring of Digital Money Lenders (DMLs), the commission 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 the 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 warned.
 
Speaking further, the commission said it will be engaging approved loan apps concerning a more robust compliance framework including any additional requirements where applicable.

Subsequently, the FCCPC said it will welcome demonstrated and timely compliance by all legitimate operators to promote and enhance fairness to consumers and fairness among competitors.

Revealing sanctions to be implemented on blacklisted loan apps, Abdullahi said, “Concerning 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.”
 
Recall in 2023, the FCCPC delisted 37 illegal loan apps for harassing Nigerians and operating without regulatory approval or in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022.