The Federal Competition and Consumer Protection Commission (FCCPC) has declared its intention to thwart loan applications that engage in harassing tactics against customers. This announcement was made through a statement released on the Commission’s official page on Saturday, May 4, 2024.
Adamu Abdullahi, the acting Chairman of FCCPC, emphasized that such practices would soon become a thing of the past, as the Commission has initiated measures to tackle the issue head-on.
Abdullahi stated, “It will soon become obsolete in Nigeria for online platforms, often referred to as loan sharks, to provide quick money to individuals for urgent needs.” He expressed concern over the detrimental effects of these loan companies resorting to sending distressing messages, including personal pictures, to all contacts of borrowers who fail to repay on time.
This form of harassment, according to Abdullahi, has led to various challenges in Nigeria, including job loss due to embarrassment and disgrace inflicted upon borrowers.
Addressing the Commission’s stance on the matter, Abdullahi stressed, “We do not condone such practices, as they constitute harassment of customers, even though it may not be directly within our purview.” He revealed that FCCPC has collaborated with major regulatory bodies such as Economic and Financial Crimes Commission (EFCC), National Information Technology Development Agency (NITDA), the Central Bank of Nigeria (CBN) and the Human Rights Commission to establish a committee aimed at addressing the issue comprehensively.
Abdullahi further disclosed that, upon discovering that these loan companies operate solely online without physical offices or identifiable managing directors, FCCPC took measures to request the removal of their applications from Google and Apple stores. Additionally, cooperation with the CBN led to the blocking of their accounts.
Following the account blocking, Abdullahi explained that FCCPC approached the companies, requiring them to furnish detailed information, including addresses and managing directors’ identities, before being presented with new regulations governing their operations. He reiterated the Commission’s commitment to promptly addressing customer complaints and reiterating sanctions against non-compliant loan apps.
Abdullahi noted that warning notices have been issued to these loan companies, with enforcement actions commencing the previous week. He emphasized that the companies have pledged in writing to cease accessing customers’ contacts and photos. Any recurrence of such practices, Abdullahi concluded, would result in immediate suspension by the Commission.
