Legal Informer: Current Status of Fintech/Digital Companies’ Registration”
Following the investigation by Inter-Agency on Joint Task Force on the Digital Lending Apps, the registration of the Apps to the Limited Interim Regulatory Framework and Guidelines for Digital
Lending has commenced.
Earlier the commission ordered Apple and Google to take down specific companies’ apps from their platforms noting that some of these Fintech apps. providing loans to their users is predatory
in their lending service. This form of lending involves unethical lending practices seeking to enforce unfair and abusive loan terms on borrowers. Predatory lenders employ deceptive and aggressive sale tactics to attract unsuspecting borrowers into taking loans they cannot afford.
In line with the provision of the FCCPC Act, 2018 (Federal Competition and Consumer Protection Act) Section 124, ss (a – e) on the right to fair dealings of consumers of services – in this case;
Borrowers, prohibits the use of physical force, coercion, undue influence or pressure, harassment, unfair tactics or any other similar conduct against any person in connection with demand for, or
collection of, payment for goods or services by the consumer; or the onduct of legitimate business transaction. Also, S. 127 of the Act is of the effect on Unfair, unreasonable, or unjust contract terms.
Guided by these provisions, the investigation of the Inter-Agency on Digital Lending Apps is duly necessary to curb abuse and unreasonable practices by the Fintech companies by way of
scrutinizing them for full approval or conditional approval or revocation of license.
The current list of approved and conditionally approved companies/Digital lending Apps is displayed on the Commission’s Website.
