Various loan application platforms have been raided by the Federal Competition Consumer Protection Commission (FCCPC), the Independent Corrupt Practices Commission (ICPC), and the National Information Technology Development Agency (NITAD) for violating consumer rights.
FCCPC Executive Vice Chairman and Chief Executive Officer, Mr. Babatunde Irukera, who led the raid said the growing number of consumer complaints about the activities of loan application platforms in relation to privacy infringement and high interest rates prompted the action.
He stated that a situation in which loan application platforms broadcast names and images of loan defaulters to all of their phone contacts without due process and in a manner that suggests naming and shaming will not be accepted.
Mr. Irukera explained that during the COVID-19 lockdown, many homes affected by the epidemic required soft loans, making it necessary to get loans.
He bemoaned the fact that the vast majority of businesses are operating unlawfully and without being registered with the Corporate Affairs Commission (CAC) and the Central Bank of Nigeria to conduct financial operations in the country.
The FCCPC and other authorities participating in the raid took away working tools, including laptops, to aid their investigation.
Irukera stated that the agency has been watching the firms’ operations for several months and that determining their operational base has been challenging.
