FCCPC issues new directives against unlicensed, illegal online banks

The Federal Competition and Consumer Protection Commission (FCCPC) has directed unlicensed and illegal online money lending banks to stop compounding interest and loan collection practices that are presently undergoing investigations.

This is as Nigerians have reacted to its ongoing enforcement exercise across the country against these illegal online banks with their unfair practices with the shutting down of some of these firms.

This disclosure is contained in a press statement issued by the Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera.

Irukera in the statement warned that violators of this order will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).

READ ALSO: FCCPC to introduce regulatory framework for online lenders

Irukera, however, stated that the order does not include existing borrowers repaying legitimate loans under fair and acceptable terms and conditions or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness.

The statement from Irukera partly reads, ‘’In the interim, the Commission admonishes all the businesses that were subject of regulatory intervention on Friday, March 11, 2022, to cease and desist the interest compounding and loan repayment/collection practices that are the objects of this investigation.

“In the event that any of these businesses continue in any of this conduct, or the Commission receives credible evidence of such, violators will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).

“The Orders of the Commission are without prejudice to existing borrowers repaying any legitimate loans pursuant to fair and acceptable terms and conditions; or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness. The obligation to comply with the above extends to all operatives, employees or agents of the affected businesses.’’

Meanwhile, some Nigerians have been reacting to the shutdown of these unlicensed, illegal and defaulting online money lending banks by the inter-agency Joint Regulatory and Enforcement Task Force (JRETF) led by the FCCPC.