The Money Lenders Association (MLA) has backed the recent enforcement by the Federal Competition and Consumer Protection Commission (FCCPC) aimed at ensuring ethical operations in digital lending in Nigeria.
President, MLA, Gbemi Adelekan,made this known in an interview with the News Agency of Nigeria on Thursday in Lagos.
Acting executive vice chairman of FCCPC, Dr Adamu Abdullahi, had warned against persistent violations of consumer rights by digital money lenders.
Abdullahi affirmed the FCCPC’s commitment to intensifying enforcement efforts to end consumers’ exploitation while ensuring digital lenders comply with regulations.
Adelekan expressed MLA’s sympathy with members of the public on activities of some unlicensed and illegal digital lenders.
“The association wholeheartedly supports the measures by the FCCPC, to sanitise and safeguard people from online fraud, unethical practices and foster a reliable digital environment, especially at this crucial time in the Nigerian economy.
He urged the general public to exercise caution when applying for loans online by ensuring that they only deal with licensed and approved digital money lenders.
Adelekan advised the general public to be careful and carry out their Know Your Client on digital lenders before applying for loans, while being careful of “too good to be true” offers from unscrupulous operators.
“MLA condemns in its entirety, this unprofessional act perpetrated by some unscrupulous lending organisations (not our members).
“Money Lenders Association is duly incorporated under the Laws of the Federal Republic of Nigeria, with its primary objective being the advancement of the money lending industry, and safeguarding the interests of the public and customers using our lending platforms.
“The association actively collaborates with the FCCPC and government to address the practical challenges faced by members of the public and our members, in their daily operations.
“As part of our commitment to ethical practices, members of our Association adhere to a comprehensive code of practice which facilitates self-regulation of our activities, to ensure compliance with FCCPC and government regulations, to promote trust and confidence,” he said.
The MLA president identified key pointers to look out for in obtaining loans, physical location, approved practitioners, other customers review among others.
He stressed that any lender that promised the approval of loan requests without a background analysis, was definitely a red flag.
“It is important to know that your digital lender has a physical location where the business is registered or where the company operates from. This information can be available on the lender’s website.
“Consumers are encouraged to consider only licensed and approved Digital Money Lenders by the Government and FCCPC. Check the FCCPC’s website for the list of approved Digital Lenders and the Lender’s website (if there is one) to ensure that you are dealing with a legitimate provider.
“Security deposit is a No-No-No!!!. A lender asking for a security deposit or a substantial payment before the loan application is considered is definitely fraudulent.
“Any lender asking the borrower to pay a substantial amount i.e. Bond or security deposit before an application is considered, is definitely a red flag.
“The general public should be careful of using “apk loan links” from unsolicited telesales agents, to apply for loans. For your mobile app loan applications, the Association only recommends the use of apps published on Google Playstore/Apple store.
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