The Federal Competition and Consumer Protection Commission (FCCPC) had commenced the clean-up of Nigeria’s digital lending space.
The move, according to the Money Lending Association is necessary for the growth of online lending.
The Chairman of the Money Lending Association, Mr Gbemi Adelekan, mentioned this in an interview on Thursday.
He said online lending applications has been experiencing significant growth for the past few month compared to traditional financial institution.
“The growth of the lending application had also attracted lots of players including the licensed players and some unregistered operators that were violating the consumer rights in the country.
“The unregistered operators led it to increase in default rate due to economic situation and financial constraint for some customers.
Adelekan recalled that in August, 2022, the FCCPC issued interim guidelines on the registration of digital lending platforms in the country.
“These illegal operators use threatening and arm-twisting tactics as part of their collection strategy,” he said. Adelekan stated that the continuous investigation and surveillance by the commission demonstrate its commitment to tackling these unwholesome practices head on.
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