FCCPC approves more digital loan apps

The Federal Competition and Consumer Protection Commission (FCCPC) has registered and approved more digital money lenders, otherwise known as loan apps, bringing the list of approved companies to 211 at the end of October.

The 211 companies comprise 172 that have received full approval from the Commission and 39 others with conditional approval.

As of September this year, the total number of companies that had been fully approved stood at 161, while those with conditional approvals were 40.

The increase indicates that new companies are coming up to secure FCCPC’s approval for the digital lending business amid the battered image of the business over incidents of harassment and defamation of borrowers by some of the lenders.

The resumption of registration of digital money lending apps by the FCCPC after the March 27, 2023 deadline, is also paving the way for more companies to enter the market.

Meanwhile, the number of loan apps under the watchlist of the consumer protection watchdog has also increased from 55 in September to 84 at then of October.

READ ALSO: FCCPC delists two registered loan apps using multiple channels to harass borrowers

Aside from those on watchlist, FCCPC said it has, in partnership with Google, delisted a total of 45 loan apps from the Google Play Store. The delisted apps are those found to be operating illegally in the country.

According to the Commission, it came up with the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, in collaboration with the Joint Task Force (JTF) to promote fair, transparent, and beneficial alternative lending opportunities for Nigerians.

The registration was also necessitated by the disturbing activities of loan apps in the country, especially the illegal ones, over allegations of rights violations, and unfair practices, among others.

Some of the loan apps charge interest rates that violate the ethics of how lending is done and are involved in naming and shaming which is a violation of people’s privacy with respect to how these lenders recover loans, among other violations.

The Chief Executive Officer of the FCCPC, Mr. Babatunde Irukera said, what Nigeria is currently witnessing regarding the operation of digital lenders is a global challenge.

“Our concern is similar to global challenges with respect to digital lending.  Technology is an incredible tool and platform for expansion and shared prosperity, however, it is sadly also a potential tool for exploiting and impoverishing people.

“We are now certain that those who are willing to do business ethically have come within the Framework, while those determined to engage in illegal and abusive conduct find other means,” he said.