Emmanuel OchayiThe Federal Competition and Consumer Protection Commission (FCCPC) has approved an additional 211 digital money lenders, known as loan apps, marking an increase from 161 fully approved companies in September. This is part of a proactive approach taken by the Commission to tackle the issues plaguing the digital lending industry in Nigeria.
Notably, 39 companies received conditional approval, reflecting the cautious scrutiny being applied.
In a statement, FCCPC officials emphasized their commitment to promoting fair, transparent, and ethical lending practices, which have been overshadowed by reports of harassment and defamation of borrowers by some lenders. The increase in approved companies indicates a renewed interest in obtaining FCCPC’s endorsement within the digital lending sector.
However, the FCCPC’s vigilance doesn’t stop at approvals. The consumer protection watchdog is keeping a close eye on the industry, with 84 loan apps now under its watchlist, an increase from 55 in September. These apps on the watchlist are suspected of engaging in unethical practices, further underscoring the need for regulatory oversight.
Among the apps on the watchlist are Cashlawn App, Easynaira App, Crediting App, and others that have raised concerns regarding their lending practices.
In partnership with Google, the FCCPC had some months back, taken action against illegal loan apps, delisting 45 of them from the Google Play Store, making it clear that operating outside the bounds of the law will not be tolerated.
The FCCPC’s efforts are part of a broader mission to address the disturbing activities within the digital lending industry, including rights violations and unfair practices. The Commission has emphasized the need for fair interest rates and the avoidance of unethical naming and shaming practices used in loan recovery.
Mr. Babatunde Irukera, the Chief Executive Officer of the FCCPC, pointed out that the challenges faced in Nigeria’s digital lending industry are part of a global issue. While technology can be a powerful tool for expansion and prosperity, it can also be exploited to the detriment of individuals. The FCCPC’s actions are aimed at creating a framework where ethical businesses can thrive, while illegal and abusive conduct is discouraged.
As the FCCPC continues to regulate and oversee the digital lending landscape, the hope is that these measures will ultimately lead to a more consumer-friendly and ethical industry.
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