FCCPC orders failing lending banks to stop interest and loan collections as Nigerians react

The Federal Competition and Consumer Protection Commission (FCCPC) has, as part of its sweeping orders against illegal and unlicensed online money lending banks, ordered them to cease compound interest and loan collection practices which are currently under investigation.

It was then that Nigerians reacted to its ongoing law enforcement exercise across the country against these illegal online banks with their unfair practices with shutting down some of these businesses.

This disclosure is contained in a press release issued by FCCPC Vice President/Managing Director, Babatunde Irukera, and seen by Nairametrics.

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

What the FCCPC CEO says in the statement

Irukera, however, said the order does not include existing borrowers repaying legitimate loans on fair and acceptable terms or any changes to previous terms and conditions that are considered onerous, inconsistent with applicable law or principles. principles of transparency and fairness.

Irukera’s statement reads in part, ‘“In the meantime, the Commission urges all companies that were subject to regulatory intervention on Friday 11 March 2022 to cease and desist from interest compounding and loan repayment/recovery practices that make the object of this investigation.

Should any of these companies continue to engage in any of these conducts, or should the Commission receive credible evidence, violators will be subject to the full extent of the law, including prosecution (without the possibility regulatory administrative resolution).

“The Commission’s orders are without prejudice to existing borrowers who repay any legitimate loans on fair and acceptable terms; or any modification of the previous general conditions deemed onerous, incompatible with the law in force or the general principles of transparency and fairness. The obligation to comply with the above extends to all agents, employees or agents of the companies concerned.”

Meanwhile, some Nigerians have reacted to the closure of these unlicensed, illegal and failing online money lending banks by the FCCPC-led Joint Inter-Agency Task Force on Regulation and Enforcement (JRETF) .

Twitter user Chris accused some people who support the current exercise of taking loans from listed apps and then wanting to shut them down so they don’t pay.

Kabiru Ohida asked if the current fight will see the light of day as he strongly believes that the owners of these companies are strong politicians in government, advising Irukera to fight wisely.

Twitter user Angel Essell said one of the failing companies listed, LCredit, is still on top and still sending defamatory messages to contacts boasting that the government can’t stop them.

A Twitter user, Lekan Olagbami, said this is the way to go as loan applications are becoming a source of grief and depression for many Nigerians. He said the loans lasted only 7 days with very high interest rates with abnormal daily fees and defamatory messages, adding that they should be regulated or banned.

Promise lamented that nothing good is coming out of Nigeria and that is why other countries see us as bad people. She wondered why people took out loans and didn’t repay.

Alfred Osuagwu praised the government’s efforts to crack down on these loan sharks, especially their fraudulent calculation and interest rate terms.

Hirofunshi said LCredit is the worst of all, in fact, worse than Sokoloan, asking for special interest to be given to them.

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