Why We Froze 50 accounts of Firms Operating loan apps in Nigeria –FCCPC Boss

Why We Froze 50 accounts of Firms Operating loan apps in Nigeria –FCCPC Boss

The Executive Vice-Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission, FCCPC, Babatunde Irukera has disclosed why the agency had taken strong actions against loan apps and other firms violating the rights of Nigerian consumers.

THECONSCEINCENG reports that Irukera made the disclosure during a recent interview where he exposed some the steps the agency has been putting in place to regulate the nefarious activities of online loan apps.

When asked why it took the agency so long to stamp its authority on the loan operating firms, Irukera said “In reality, we are not late to the party. The robustness of your action is what determines whether or not you are late to the party. This is happening across the continent. We are the leading regulator on the continent; others are looking to learn from us on how we are succeeding. It is not likely you are late to the party when others in the party are asking you the dance steps.

“We have so far frozen 50 accounts. We have taken over 12 applications off the Google Play Store and we are in discussions with more than 10 companies right now. The rate of defamatory messages has dropped by at least 60 per cent. I am not saying they have stopped but they have dropped by at least 60 per cent. More than half of the companies that are currently before us have agreed that they will have to modify their behaviour. Many of them have changed some of their systems, including sacking some employees who sent defamatory messages. We are developing a regulatory framework that will involve other regulators, and we are prosecuting at least one company right now.”

The FCCPC boss further promised Nigerians that the organization is leaving no stone unturned in determining and punishing offenders.

“Well, money lending (loan) itself is not a criminal conduct. So, you have to determine there has been a crime. And even defamation, when civil, is not something a regulator can enforce. It is an injury to reputation that is only enforceable by the injured party and through the judicial process. What we are doing as a regulator includes things that the law gives us power to do.  Some of these things are still happening, but we will continue the work to eradicate them.”