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 President and CEO, Mr. Babatunde Irukera, who led the raid, said that the growing number of consumer complaints about the activities of loan application platforms in relation to the violation of the privacy and high interest rates had prompted the action.
He said a situation in which loan application platforms broadcast the names and pictures of loan defaulters to all their phone contacts without due process and in a way that suggests naming and shaming will not be accepted.
Mr. Irukera explained that during the COVID-19 lockdown, many households affected by the outbreak needed concessional loans, which made it necessary to obtain loans.
He lamented that the vast majority of businesses operate illegally and unregistered with the Corporate Affairs Commission (CAC) and the Central Bank of Nigeria to conduct financial operations in the country.
The FCCPC and other authorities involved in the raid took work tools, including laptops, to aid in their investigation.
Irukera said the agency had been monitoring the companies’ operations for several months and it was difficult to determine their operating base.