Consumer Protection Commission calls on digital money lenders to comply with CBN standards

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The Federal Competition and Consumer Protection Commission (FCCPC) has urged unregulated digital money lending entities to comply with Central Bank of Nigeria (CBN) standards.

Babatunde Irukera, the executive vice president of the FCCPC, said so when he engaged with the public via Twitter on Wednesday.

Mr Irukera said the commission adopted the CBN standards on a provisional basis.

He said certain activities of unregulated money lenders were anti-competitive for microfinance banks and other regulated entities involved in digital money lending.

Mr. Irukera said the federal government was only concerned about the calculation of interest rates, breach of privacy, harassment and mischaracterization of borrowers in the digital money lending space.

He described some of their activities with borrowers and creditors as abusive, defamatory and illegal.

“The federal government is certainly not opposed to digital lending products, as it is one of the fastest ways to increase our financial inclusion penetration rate.

“But the question is that it needs to be done in a way that their services to vulnerable people in society do not turn into exploitation.

“The point we are at now as the FCCPC, is to adopt the current CBN standards, insisting that non-CBN regulated money lending institutions conform to similar standards,” said- he declared.

Mr Irukera said part of the operational guidance given to digital money lenders by the Commission was to have a consumer feedback mechanism.

He said the directive posited that the feedback mechanism should be open, easily accessible, clear and functional on which the FCCPC could have visibility.

The executive vice president said that a dissatisfied borrower or guarantor could contact the digital currency institution and they would resolve the issue.

(NOPE)

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