NEWS UPDATE: LOAN SHARKS AGREE TO DESIST FROM THREATENING, DEFAMING DEFAULTERS- FEDERAL COMPETITION AND CONSUMER PROTECTION COMMISSION.
By: Nneka Oduada Eze (Esq)
The Federal Competition and Consumer Protection Commission (hereinafter referred to as “the FCCPC”) has disclosed that Digital Money Lenders who are willing to continue operations in Nigeria must agree to certain conditions as laid down by the FCCPC.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Babatunde Irukera, disclosed that some of the money lenders under investigation, or whose bank accounts have been frozen amongst others have agreed to cease and desist from messaging people on contact lists or third parties borrowers/defaulters.
It was revealed that these companies have also agreed to discontinue further abusive, coercive and inappropriate language in communication with loan defaulters or borrowers. According to him, some of the money lenders have approached the FCCPC and expressed a desire to cooperate and assist in the investigation under FCCPC Investigative Cooperation/Assistance Rules and Procedure, 2021.
In an update of investigation into possible violation of privacy and other rights in the online money lending industry by the joint task force made up of FCCPC, NITDA and ICPC, Irukera stated that: “They seek benefit under Rule 4 in exchange for cooperation, assistance and compliance under Rule 3 as a condition to acceptance into the cooperation/leniency framework, some of the money lenders have been required to, have agreed and execute applicable declarations enforceable under Section 153 of Federal Competition and Consumer Protection Act to immediately and forthwith, cease and desist from contacting, including by text messages, people on contact list, third parties of borrowers or defaulters; discontinue further abuse, coercive and inappropriate language in communication with loan defaulters or borrowers, provide a mechanism for transparency regarding loan payment fees, default or late payment charges as well as interest calculation to the commission”.
The proposed mechanism includes an open, accessible and responsive feedback and dispute resolution framework that complies with fair lending and loan recovery principles as well as acceptable regulatory standards for reconciliation and disputed balance calculations and complaint resolution, it will no doubt put a stop to the abrupt abuse and breach of citizens right to privacy. This will also encourage fair and transparent practice in the sector while also taking into cognizance the need to allow these fast emerging businesses thrive within the Nigerian economy.
Undoubtedly, this will be a win-win situation for both the lender and borrower and most importantly, it will be a sigh of relief to thousands of Nigerians, who in time past have been victims of the excesses of these loan sharks.