CBN, EFCC, ICPC, Others hunt down micro loan sharks for their many sins
Posted: November 17th, 2021, 2:52 am
Nigerian regulatory bodies seem to have finally heard the cries for help of many poor and vulnerable Nigerians who have been groaning under the torture of loan sharks - especially micro loan companies operating in manners that infringe on the rights of poor citizens. 
In fact, it's in the news that the Federal Competition and Consumer Protection Commission (FCCPC), the Central Bank of Nigeria (CBN) and the Economic Financial Crimes Commission (EFCC) have commenced rights violation investigation into the money lending industry
While many of these fintech lenders do well by bridging the easy access to micro finance loan gap, their roles still need to be performed within the armbit of the law and in ways not debilitating or exploitative to the citizens.
In the words of Mr Babatunde, CEO of FCCPC:
1. Outrageous terms and interest rates
2. Privacy evasion
3. Blackmail and breach of trust
4. User data mismanagement
5. Unauthorized use of customer data
And more.
Apart from outrageous and back breaking interest rates and terms, it is notable that many of these micro lenders resort to shaming and defamation in order to recover funds.
They have the habit of sending defaming texts to stolen contact list of customers in order to shame them to repay. They have the habit of calling them names like chronic debtors, criminals, wanted and more. Such messages via SMS or WhatsApp have caused many users great irreparable damages.
There's even a case of a poor graduate borrower reported on Bestnaija Forum https://bestnaija.ng/ who considered suicide after 9jacredit sent such messages to his pastor and employer and family.
These need to stop.
Thanks to EFCC, ICPC and others for standing up eventually. In fact an email has been set up as desk for consumers complaints.
Mr Babatunde also said the commission had created this dedicated email address to receive public complaints, identity of businesses or individuals involved in these practices.
The e-mail address is [email protected].
Did you or your close acquaintance have any past experiences with these micro loan sharks? Share and let's learn.
In fact, it's in the news that the Federal Competition and Consumer Protection Commission (FCCPC), the Central Bank of Nigeria (CBN) and the Economic Financial Crimes Commission (EFCC) have commenced rights violation investigation into the money lending industry
In the words of Mr Babatunde, CEO of FCCPC:
The many crimes of these loan sharks include but not limited to:"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.
“A joint taskforce of analysts and enforcers was also created and immediately activated.
“The agencies recognised and welcome products and providers that bridge the lending gap for consumers who would otherwise be ineligible for conventional loans from traditional financial institutions.
“However, this must occur within legally acceptable parameters of transparency and fairness,’’
1. Outrageous terms and interest rates
2. Privacy evasion
3. Blackmail and breach of trust
4. User data mismanagement
5. Unauthorized use of customer data
And more.
Apart from outrageous and back breaking interest rates and terms, it is notable that many of these micro lenders resort to shaming and defamation in order to recover funds.
They have the habit of sending defaming texts to stolen contact list of customers in order to shame them to repay.
They have the habit of calling them names like chronic debtors, criminals, wanted and more. Such messages via SMS or WhatsApp have caused many users great irreparable damages.There's even a case of a poor graduate borrower reported on Bestnaija Forum https://bestnaija.ng/ who considered suicide after 9jacredit sent such messages to his pastor and employer and family.
These need to stop.
Thanks to EFCC, ICPC and others for standing up eventually. In fact an email has been set up as desk for consumers complaints.
Mr Babatunde also said the commission had created this dedicated email address to receive public complaints, identity of businesses or individuals involved in these practices.
The e-mail address is [email protected].
Did you or your close acquaintance have any past experiences with these micro loan sharks? Share and let's learn.