The Federal Competition and Consumer Protection Commission (FCPC) has announced plans to crack down on loan apps that engage in harassing practices towards their customers. This decision comes in response to widespread complaints from Nigerians regarding the aggressive tactics these loan providers employed.
Addressing the issue, the acting chairman of the commission, Adamu Abdullahi, affirmed that steps have been taken to tackle the problem head-on.
He stated, ”It would soon be history in the country that online platforms that many people know as loan sharks, where some Nigerians access money quickly to solve urgent issues,” in an interview with the BBC.
The move by FCPC follows earlier concerns raised by the Nigeria Data Protection Commission (NDPC) in March. NDPC disclosed that it was investigating over 400 cases of privacy breaches involving online loan apps, highlighting the intrusive nature of these platforms.
Furthermore, NDPC has advocated for stricter measures, including a ban or restriction on mobile numbers associated with lenders found to have breached customer privacy. According to the commission, these loan apps often violate principles of data protection and privacy by accessing contacts, pictures, messages, and other personal data of users.
The decision to crack down on harassing loan apps reflects a concerted effort by regulatory bodies to protect consumers from exploitative practices in the digital lending space. Abdullahi emphasized the commission’s commitment to safeguarding the rights and interests of Nigerian consumers.
In response to the announcement, many Nigerians have expressed relief, hoping that the actions taken by FCPC will lead to a safer and more transparent environment for accessing financial services online. Concerns over the aggressive tactics employed by certain loan providers have been a longstanding issue for many borrowers.
With the FCPC’s proactive stance, there is optimism that stricter regulations and enforcement measures will deter loan apps from engaging in harassing behavior and ensure greater accountability within the digital lending industry. This move emphasizes the importance of regulatory oversight in safeguarding consumer rights in the evolving digital financial sector.