Federal Competition and Consumer Protection Commission (FCCPC) Clears Database of Approved Loan Apps
In a recent development, the Federal Competition and Consumer Protection Commission (FCCPC) has taken action to clean up its database by removing all approved loan apps, also known as Digital Money Lenders (DMLs). The move comes after concerns were raised regarding the conduct of some registered digital lenders who allegedly defamed and harassed their customers, contrary to the purpose of their registration.
The list of over 180 registered loan apps in the country has been taken down from the FCCPC website for the purpose of review and cleanup. A message on the website confirms that the list will be made available again as soon as the clean-up process is completed.
Regulating digital lenders has presented its challenges, as highlighted by Mr. Babatunde Irukera, the Chief Executive Officer of FCCPC, in a recent interview with Nairametrics. He explained that the nature of online lending makes it difficult to exercise total regulatory control. While some companies operating ethically have come under the regulatory framework, others have found alternative means to engage in illegal and abusive conduct outside of the framework.
This struggle is not unique to Nigeria, as regulators and law enforcers around the world face similar challenges in regulating internet-based businesses. Mr. Irukera also pointed out that many developed countries and platforms, including Google, are learning from Nigeria’s efforts to tackle these issues.
As the FCCPC conducts its investigations, it aims to find and hold accountable those who engage in unethical practices, ensuring that they are permanently removed from the list of allowed operators. The ultimate goal is to strike a balance between promoting expansion and shared prosperity through technology while safeguarding individuals from exploitation and impoverishment.