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Loan sharks: the FCCPC will introduce a regulatory framework for online lenders

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The Federal Competition and Consumer Protection Commission (FCCPC), which recently obtained a court order to suspend the operations of certain money lending apps in Nigeria, is set to introduce an appropriate regulatory framework for operators.

This was revealed by the FCCPC boss, Mr. Babatunde Irukera, during the World Consumer Rights Day in Abuja.

According to him, the FCCPC is planning to bring loan sharks under regulatory control in Nigeria due to its findings in the recent raids.

What FCCPC says about loan sharks

He said the FCCPC during the raid discovered that “it is much more serious than we thought and now we have to look at how we can bring these people into the regulatory framework.

During the raid we carried out on Opebi Street in Lagos, we discovered that it was much more serious than we thought.The room was very large, each person has a computer with a telephone to contact defaulting debtors.

“In the aftermath, we took 119 laptops, eight cell phones, a table phone and a hard drive from them. These devices are now in the hands of forensic experts and if we examine them and what we can learn from them, we can now decide which way to go. It’s because there are faces behind these guys.

He added that the workers at the sites were unemployed graduates who had no other means of support, who even tried to rebel against us to prevent them from doing their jobs.

They said the Chinese gave them a job and the feds didn’t and the feds said they shouldn’t continue what they’re doing, adding that they felt it was appropriate to attack the FCCPC, which saw the police brought in as cover to fire into the air to disperse them. It was a terrible experience. Now we have to see how we can bring these people into the regulatory framework,” he added.

What you should know

Nairametrics reported that the FCCPC served high profile orders on Google LLC (Play Store) and Apple Inc. (App Store) to force the removal of certain money lending apps from their stores.

According to the statement, the Tech duo companies should remove certain companies from lending apps when evidence has established inappropriate conduct or use of the app in violation of consumer rights.