FCCPC to loan apps: Don’t use unethical loan recovery methods

The Federal Competition and Consumer Protection Commission (FCCPC) says it would give no room to digital money lenders (DML) exploiting customers or violating the conduct.

The commission said this in a statement signed by Adamu Abdullahi, acting executive vice chairman and chief executive officer (CEO) of FCCPC, on Monday.

FCCPC said after close investigation and monitoring there has been an upsurge in violations of the inter-agency joint task force’s limited interim regulatory and registration framework and guidelines for digital lending in 2022.

The agency said there would be no tolerance for defaulters who take advantage of customers.

“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,” FCCPC said.

“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.

“In addition, in the coming days, the commission 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.”

The commission reiterated its commitment to ensure legal and ethical operations in digital lending.

FCCPC also encouraged consumers to patronise only approved DMLs listed on its website and feedback and complaints could be forwarded here.