The Federal Competition and Consumer Protection Commission (FCCPC) has disclosed plans to strengthen enforcement against digital money lending violations in the country.
This is following an observed upsurge in violations of the Interagency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.
Ag. Executive Vice Chairman/ Chief Executive Officer of the Commission, Dr. Adamu Abdullahi who disclosed this in a statement on Monday said, “the Commission understands the increased demand for loans during this time of the 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, he said, 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.
Dr. Abdullahi said, 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.
He said, 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.
He said, 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 reiterates its commitment to ensure legal and ethical operations in digital lending; and encourages consumers to consider/patronise only approved DMLs on its website.
