CBN Joint Task Force to Shut Down Abusive Money Lending Apps

According to the Federal Competition and Consumer Protection Commission (FCCPC), the CBN  joint committee addressing violations of consumer rights in the money lending industry would shut down illegal firms as soon as its enforcement begins.

This was disclosed by Babatunde Irukera, the Chief Executive Officer of FCCPC, to the News Agency of Nigeria (NAN).

Representatives from the FCCPC, the Central Bank of Nigeria (CBN), and the Economic and Financial Crimes Commission make up the joint committee (EFCC). The National Information Technology Development Agency (NITDA) and the National Human Rights Commission are also members of the group.

Mr. Irukera stated that the group will also write interim regulations that money lending companies must follow.

“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 on the field and doing enforcement work now, very shortly.

He started that the task force would shut down abusive money lending application that infringe the rights of consumers he said, “They will be closing down businesses and engaging App stores to shut down certain applications that are infringing and abusive. We are also going to be writing interim regulations and some basic information for all these money lenders to provide information so that people will know who they are.”

“Some of them are just Apps that we do not even know who the promoters are.So we are going to provide certain frameworks for them to comply with before doing business,” he explained.

Mr Irukera said the commission was making progress in its Memorandum of Understanding (MoU) with the National Insurance Commission, citing an increase in consumer complaints regarding insurance company services (NAICOM).

We expect more industry-wide initiatives in that arena after that MoU is completed early next year, according to him.

“We get a lot more complaints about the insured who have paid their premium and are not been settled and so, we are engaging NAICOM on that,” he said.