The Federal Competition and Consumer Protection Commission (FCCPC) is taking a strong stance against loan apps that resort to harassment tactics. Acting Chairman Adamu Abdullahi announced a new initiative to combat this issue, stating that the FCCPC will block any app found harassing borrowers.
This crackdown comes in response to a growing concern in Nigeria. Many citizens rely on online loan apps for quick access to funds, but some companies have been employing aggressive collection practices. These practices can include sending embarrassing messages with borrowers’ pictures to their contacts. This harassment has caused significant distress, with some individuals even losing their jobs due to the shame and humiliation.
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The FCCPC is not taking this issue lightly. They have formed a committee with other relevant agencies, including the Central Bank of Nigeria (CBN), the National Information Technology Development Agency (NITDA), the Economic and Financial Crimes Commission (EFCC), and the National Human Rights Commission.
One key strategy involves collaboration with app stores. The FCCPC has approached Google and Apple to remove the apps of non-compliant loan companies. Additionally, they have coordinated with the CBN to freeze the accounts associated with these apps.
However, the FCCPC isn’t just focused on shutting down operations. They are also demanding reforms. After blocking accounts, they provided loan companies with forms to register their details and management structure. These companies have also agreed in writing to refrain from accessing borrowers’ contacts and photos. Any future breach of these regulations will result in immediate blocking.
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The FCCPC has issued warnings and initiated this program recently. With stricter regulations and collaboration with relevant bodies, they aim to create a more ethical and consumer-friendly online lending environment in Nigeria.
