FG plans to shut down money lending businesses for breach

  • Some lending companies will soon be shut down by the Federal Competition and Consumer Protection Commission
  • According to the federal government agency, the actions of loan companies are absolutely undesirable
  • Recall that lending companies like Nowcash, 9credit are known for the way they send defamatory messages against their customers

The Federal Competition and Consumer Protection Commission (FCCPC) has declared that the joint committee set up by the federal government to combat the violation of consumer rights and unfair practices in the money lending industry will close. illegal businesses at the beginning of its application.

The Managing Director of FCCPC, Mr. Babatunde Irukera revealed this during an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

FCCPC Managing Director Mr Babatunde Irukera SAYS that FG plans to shut down money lending businesses due to violations. Photo: The Cable
Source: UGC

Recall that earlier in November 2021, the federal government decided to check some of the illegal, unsound and unfair practices in the money lending industry with the establishment of a joint committee to remedy the situation.

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The acts were quickly becoming a mainstream and abusive practice targeting some of the most vulnerable people in society.

The committee, which received more than 500 emails and information regarding the investigation, was expected, through its activities, to lead efforts to combat multiple potentially questionable behaviors by some lenders, otherwise known as loan sharks.

The joint committee is made up of representatives from the FCCPC, CBN, Economic and Financial Crimes Commission (EFCC), National Information Technology Development Agency (NITDA) and the National Human Rights Commission. man (NHRC).

Irukera said the committee will also draft interim regulations, which money lending companies must abide by.

He said:

“The joint committee is meeting and agreeing on how to proceed, but I can say that two of the entities of the joint committee will be going to the field and carrying out application work very soon.

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“They will shut down businesses and hire app stores to shut down certain infringing and abusive apps.

“We will also be drafting interim regulations and background information for all of these money lenders to provide information so people know who they are.

“Some of them are just apps that we don’t even know who the promoters are. So we’re going to provide them with certain frameworks that they have to meet before doing business.”

Electricity, banking and aviation top consumer complaints chart in 2021

The Federal Competition and Consumer Protection Commission (FCCPC) says the electricity industry once again topped its consumer complaints chart in 2021, just like it did in 2020.

FCCPC Managing Director, Mr. Babatunde Irukera, who revealed this during an interview with the News Agency of Nigeria (NAN) yesterday in Abuja, said banking-related complaints followed a close second. position on the board.

Irukera explained that aviation and telecommunications-related complaints were next on the board.

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Irukera said the commission received and completed the processes of no less than 32,000 consumer-related complaints in 2021, 80% of which were resolved.

He said: “For the sectors that have received the most complaints, we have electricity, banking and then aviation are now competing with telecommunications in third place.

Many loan companies in Nigeria are illegal, says FG, angered by privacy breaches

Meanwhile, the federal government has revealed that many loan companies in Nigeria are not registered with the relevant authorities and are operating illegally.

Recall that many Nigerians have complained bitterly about the “terrible” practices of these companies which openly lie against their defaulting customers while invading their privacy.

In a statement posted on Facebook, the FG, through the Federal Competition and Consumer Protection Commission (FCCPC), revealed that many of these loan companies are unregistered.

Source: Legit.ng

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