FCCPC to institute criminal prosecution of online money lenders

The Federal Competition and Consumer Protection Commission (FCCPC) has said that due to the ongoing investigation of unregistered loan apps and harassment of defaulting customers, it will proceed with criminal prosecution of those whose conduct is in violation of extant law. In a statement signed by Mr Babatunde Irukera, Executive Vice Chairman FCCPC on behalf of the Joint Regulatory Task Force (JRTF) addressing ‘loan sharks’ in Abuja said that some of the lending operators under investigation, with frozen accounts, approached the Commission and expressed the desire to cooperate with the FCCPC. Irukera said in the statement that the Commission would also hold employees, collaborators or agents of money lenders accountable in line with extant laws in the event of any conduct violation. He said that as a condition to acceptance into the cooperation framework, some of the moneylenders have been required to desist from contacting, including by text messages, people on contact lists/third parties of borrowers or defaulters.

”They are also required to discontinue further abusive, coercive and inappropriate language in communication with loan defaulters or borrowers. To also provide a mechanism for transparency regarding loan repayment fees, default or late payment charges as well as interest calculation to the Commission. The mechanism must include an 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 added. 

The Commission also commended consumers for diligent cooperation in providing vital and meaningful information that had so far assisted the Commission’s investigations. Late last year, the Federal Government through the FCCPC moved to check some of these illegal, unwholesome and unfair practices in the money lending industry. The committee it was gathered received over 500 electronic mails and information in respect of the investigation was expected to through their activities lead efforts to address multiple potentially dubious conducts of certain money lenders, otherwise known as loan sharks. The FCCPC as part of its wide-ranging orders against unlicensed and illegal online money lending banks, had directed them to stop compounding interest and loan collection practices that are presently undergoing investigations.