CSO Urges Probe Of Unlicensed Digital Money Lenders

A civil society organisation (CSO), Citizens’ Gavel has urged the Central Bank of Nigeria (CBN) to investigate and sanction operators of thirty unlicensed digital money lenders for allegedly violating the rights of Nigerians.

The group, which described itself as an organisation dedicated to justice delivery, transparency, and legal support, made the demands in a petition sent to the apex bank and signed by its communications associate, Rachael Adio.

In the petition, the organisation highlighted the alarming trend of unlicensed digital money lenders resorting to illegal means, such as harassment, character assassination, and data privacy breaches, to coerce customers into settling outstanding debts.

 The petition, which is supported by over 600 complaints against these entities, pinpoints thirty companies engaged in the alleged unethical practices through their load application.

 Citizens’ Gavel also stated, “the loan apps in question are accused of offering exploitative interest rates with excessively high daily rates, leading to financial strain and challenges in loan repayment for many borrowers,” it stated.

 The group demanded that the CBN issue directives to banks to withdraw their services from identified accounts associated with unlicensed and unregulated loan companies engaging in exploitative practices.

 It also called for compensation, public apologies, and accountability measures from the identified loan companies for the distress and harm caused to affected individuals.

 Citizens’ Gavel also implored the CBN to take immediate action against the identified entities violating consumer rights, emphasizing the severe consequences, including increased suicide risk, depression, economic hardships, and traumatic experiences for affected individuals.