The FCCPC says it will prosecute any digital money lender (loan shark) that violates the law.
The Federal Competition and Consumer Protection Commission (FCCPC) says it will prosecute any digital money lender (loan shark) that violates the law.
FCCPC’s executive vice-chairman Babatunde Irukera said this in a document signed on behalf of the Joint Regulatory Task Force (JRTF) addressing ‘loan sharks’ in Abuja on Monday.
Mr Irukera said the commission would also hold employees, collaborators or agents of money lenders accountable for any violation. He disclosed that some money lenders under investigation and whose accounts were frozen had approached the commission and expressed the desire to cooperate.
”As a condition to acceptance into the cooperation framework, some moneylenders have been required to desist from contacting, including by text messages, people on contact lists/third parties of borrowers or defaulters,” explained Mr Irukera. ”They are also required to discontinue further abusive, coercive and inappropriate language in communication with loan defaulters or borrowers.”
The FCCPC boss directed the loan sharks to provide a mechanism for transparency regarding loan repayment fees, default or late payment charges, and interest calculation to the commission.
”The mechanism must include open, accessible and responsive feedback and dispute resolution framework that complies with fair lending and loan recovery principles. The commission reserves the prerogative to proceed in any manner consistent with prevailing law, including but not limited to criminal prosecution of any digital money lender, its employees, collaborators or agents, whose conduct is in violation of extant law,” he said.
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