The Federal Government (FG) is set to investigate some illegal and unfair practices currently plaguing the money lending industry. According to reports, The Federal Competition and Consumer Protection Commission (FCCPC), the Central Bank of Nigeria (CBN), and the Economic and Financial Crimes Commission (EFCC) have already commenced investigations regarding rights violations in the money lending industry. The Independent Corrupt Practices Commission (ICPC) and the National Information Technology Development Agency (NITDA) are also involved in the probe of the money lending sector.
This was disclosed on Monday in a document signed by Babatunde Irukera, the Chief Executive Officer of the FCCPC, on behalf of the Joint Regulatory and Enforcement Committee.
The document stated, "The Federal Competition and Consumer Protection Commission on November 10, 2021; hosted a meeting attended by the Chief Executive Officer of the Independent Corrupt Practices Commission (ICPC), and representatives of the National Information Technology Development Agency (NITDA) and the Central Bank of Nigeria (CBN); in leading an effort to address multiple potentially dubious conduct of certain money lenders, otherwise known as loan sharks.
"Continuing complaints about questionable repayment enforcement practices including public shaming and violations of privacy have led to significant and understandable consumer aggravation and dissatisfaction.
"Others are arbitrary, unjust, unreasonable, or exploitative interest rates and/or loan balances calculations, harassment and failure of consumer feedback mechanisms, among others have caused consumer aggravation.
"Initial inquiries demonstrate that many of the purported lenders are not legally acceptably established or otherwise licensed by the appropriate authorities to engage in the services they ostensibly provide."
Nigerians have bitterly complained about the unfair and illegal practices of money lending companies.
Several money lending companies share information about a customer's debt with family or friends via their phone numbers recovered from the customer's phone contacts list.
Some of these money-lending companies label customers owing debts as fraudsters for defrauding the company.
FCCPC said a dedicated email address: This email address is being protected from spambots. You need JavaScript enabled to view it., has been set up by the commission in case of public complaints, the identity of businesses or individuals in the money lending sector who are involved in these unfair practices.
