FCCPC Sets Preconditions for Registration of Deleted Loan Apps

The Federal Competition and Consumer Protection Commission (FCCPC) has outlined conditions for loan apps removed from the Google Play store to regain registration.

Registration for digital money lenders has been reopened due to the emergence of new companies seeking approval.

In the wake of the technology-driven financial revolution, numerous digital loan apps have emerged.

However, some faced legal issues, resulting in their removal from the Google Play Store.

Surprisingly, the FCCPC has offered reconciliation to these culprits.

With conditions in place, the FCCPC seeks to allow these digital money lenders to register anew.

So, what’s the FCCPC’s play here, and why does it matter?

FCCPC’s Offer of Redemption

The FCCPC has always had a tough stance on loan apps, so their sudden pivot to consider registration applications from previously non-compliant loan apps raises eyebrows.

The commission has set conditions, though; the affected apps need to offer a compelling explanation for their prior failure to register within the stipulated time.

Also, the FCCPC won’t let these delinquents off easy – a late processing fee is required, payable through the Remita platform.

A nod to regulation, perhaps, or a warning shot to future offenders?

Why Reopen Registration?

You’re probably asking yourself, “Why is the FCCPC reopening registration?” Well, Babatunde Irukera, the CEO of the FCCPC, shed some light on this matter.

The commission has received numerous requests from new businesses seeking to start operations and platforms that failed to meet the initial deadline.

These requests, along with the JRETF’s efforts to create a digital lending regulatory framework, have influenced this decision.

FCCPC’s Stance on Financial Institutions

These requests, along with the JRETF’s efforts to create a digital lending regulatory framework, have influenced this decision.

These institutions can obtain the required approval by submitting a written request demonstrating their exemption and providing evidence of CBN licensure.

It’s clear that the FCCPC acknowledges the existing regulatory framework and seeks not to overlap but to fill in the gaps.

Tackling Privacy Violations

Even though privacy violations by loan apps persist, the FCCPC CEO has noted a substantial reduction in practices that infringe upon consumer privacy, harass consumers, implement unconventional loan recovery strategies, or involve unexplained loan-related charges.

It’s a fight for transparency and respect for consumers’ rights, and the FCCPC and JRETF stand on the frontlines, ready to enforce the law.

A Look Back

In March 2023, after several deadline extensions, the FCCPC finally closed the digital money lenders’ registration, leading to the acknowledgment of 180 registered digital lenders.

However, not all of them had their registration woes behind them, as 48 out of the 180 registered companies still had conditions to fulfill.

Google, aligning itself with FCCPC guidelines, removed some apps from its platform that failed to provide registration evidence.

FCCPC’s Regulatory Framework and Guidelines

The FCCPC, in partnership with the Joint Task Force (JTF), introduced the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022.

The framework aimed to promote fair, transparent, and beneficial alternative lending opportunities for Nigerians.

The disturbing activities of loan apps in the country necessitated this registration, with some apps allegedly violating rights, implementing unfair practices, and using controversial loan recovery methods.

In the complex and ever-changing landscape of digital lending, the FCCPC’s decision to allow registration of previously non-compliant loan apps showcases the commission’s adaptability.

The decision aligns with their ongoing work to create a robust regulatory environment, putting consumer protection at its core.

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