Today, the Federal Competition and Consumer Protection Commission, FCCPC, initiated a scrutiny campaign commissioned to examine trendy illegal activity in the money lending industry, TechBooky Africa writes. The FCCPC’s regulatory authority is endorsed by the Nigerian federal government with the sole agenda to penalise loan sharks caught in the act.
Several Nigerian-based companies practicing money lending as a service in Nigeria have reportedly compromised regulatory policies with fraudulent acts posed as certified practitioners. FCCPC chief executive Babatunde Irukera, confirmed the Abuja-based Joint Regulatory and Enforcement Committee [FG’s task force, FCCPC, operates as an agency] has reportedly profiled known loan sharks with corrupt policies to enforce its scrutiny policy.
The Nigerian federal government licensed the consumer protection task force with an executive authority to commence thorough scrutiny on all domestic FinTech companies. The Joint Regulatory and Enforcement Committee aka FCCPC operates dependently on other independent federal agencies, including, Economic Financial Crimes Commission (EFCC), the National Information Technology Development Agency (NTDA), the Central Bank of Nigeria (CBN), and the Independent Corrupt Practices Commission (ICPC).
The information to further FG endorsed investigation on money lenders is solely contributed by each independent law enforcement agency involved in the scrutiny campaign. The likes of EFCC have successfully apprehended several violators per the agency’s previous investigation.
FG’s consent about the EFCC involvement depicts confidence the FCCPC will be unbiased with apprehending violators according to regulatory protocols that impulsively check and balance illegal money lenders.
Per the FCCPC profiled list, Babatunde confirmed companies that are enlisted as loan sharks are based on intel originating from the feedback community that supports consumers protection.
Defaulting a loan agreement should be consequential according to the interest of the consumer. The term loan sharks come to play when money lenders use this medium to violate their customers’ interest.
Loans sharks are capable of invading their customers’ privacy, reporting false testimonies about loan defaulters, publicizing customers’ history, or sharing consumers’ information with third parties. It is worth noting this act against borrowers compromises the mutual agreement between the moneylender and the borrower — the Federal Competition and Consumer Protection is Commissioned on this behalf.
Remember the National Information Technology Development Agency (NITDA), apprehended Nigerian-based Soko Loan with an N10 million fine for compromising loan agreements. Soko Loans has reportedly pried into its customers’ privacy with unsolicited SMS and other quick message platforms.
Per the feedback community setup by NITDA, they revealed 70% of Soko Loans customers have not consented to such activities at the time of signing agreements. Although these customers defaulted to Soko Loans loan policy — a money lender is not allowed to track its user data which is liable to be shared no matter the circumstances.
Aside from invading user privacy, the federal government of Nigeria also revealed other money lenders have operated without a license. Remember the fintech company NITDA apprehend also had an inbuilt third-party platform it is entitled to share user data with, at the expense of compromising a loan agreement, Techbooky reports.