The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has pledged to take measures against loan applications that harass and intimidate their users. The interim chairman of the commission Adamu Abdullahi stated that the days of these platforms commonly referred to as loan sharks are limited.
Numerous Nigerians have resorted to these applications for assistance but have encountered persistent harassment from the creditors. There have been complaints from customers who have been subjected to intimidation, public humiliation and other forms of mistreatment by these lenders.
In light of this escalating issue, the FCCPC has initiated an inquiry into the operations of these loan apps. Abdullahi informed the BBC that the commission is dedicated to safeguarding consumers and will not condone any form of harassment or infringement on privacy rights.
Simultaneously the Nigeria Data Protection Commission (NDPC) is taking steps by investigating more than 400 instances of privacy violations linked to loan apps. The NDPC has discovered that many of these apps are excessively intrusive, accessing users’ contacts, photos and messages without authorization.
Both the FCCPC and NDPC are collaborating to clamp down on these lenders.
Consumer advocacy groups have expressed support, for the government’s initiative to block apps involved in harassment and regulate the use of numbers by lenders infringing on customer privacy.
These organizations have long pushed for oversight of the lending sector arguing that predatory practices have harmed vulnerable individuals in Nigeria seeking financial aid.
While authorities work to curb these lending practices experts advise caution when considering loans, from platforms. They recommend vetting of lenders safeguarding information and reporting any instances of misconduct to appropriate agencies.
