FCCPC Barks as Loan Apps Continue to Harass Customers

Federal Competition and Consumer Protection Commission (FCCPC) has said steps are being taken to tackle loan Apps services providers that engage in harassing tactics against customers.

FCCPC also reiterated its commitment to ensure legal and ethical operations in digital lending

Adamu Abdullahi, 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.

Stating  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.