…Intensifies enforcement efforts to check exploitation of consumers
MON, FEB 05 2024-theGBJournal|The Federal Competition and Consumer Protection Commission (FCCPC) has frowned at Digital Money lenders (DMLs) who it says utilize unethical loan recovery methods against defaulters.
This is in the wake of increased risk of default due to large numbers of loan demand and typical cash flow challenges and constraints as well as observed upsurge in violations of the Inter agency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022.
The Commission assured it is intensifying efforts and adopting a zero-tolerance stance towards any exploitation of consumers or abusive conduct, whether in balance calculations, loan default enforcement, or recovery process.
”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 Acting Executive Vice Chairman/CEO, Dr. Adamu Abdullahi, said in his statement on the matter today.
He said the Commission will only 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,” he warned.
Meanwhile, the FCCPC reiterated its commitment to ensure legal and ethical operations in digital lending, and encourages consumers to consider/ patronize only approved DMLs.
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