The Federal Competition and Consumer Protection Commission has established requirements for loan apps that have been removed from the Google Play store in order to be registered by the Commission.
Nairametrics reported that FCCPC announced this at the same time that it has resumed registration of digital money lenders after closing it on March 27, 2023, following many deadline extensions.
The Commission stated that it would only take into account and handle any existing loan applications that had not been registered by the deadline of March 27 if the applicants could provide a valid explanation for their failure to do so.
The impacted digital lenders are required by the Commission to offer “justification that sufficiently articulates an acceptable reason for failing to conclude or complete the registration before the expiration of the previously set deadline.”
A late processing fee would also apply to the applications, according to the FCCPC, and it would be paid via the Remita platform.
The Chief Executive Officer of the Commission, Babatunde Irukera, said new businesses had been forming and applying for registration since the initial registration window had closed.
“The Commission will resume accepting and approving qualifying DML applications (new and previously nonexistent entities) and requests in accordance with the guidelines and current process.
“With respect to businesses that were operating and/or were removed from Google Playstore, or ceased transaction processing or termination services by payment systems or gateways, the Commission will only consider and process such applications (whether currently received and pending before the Commission or otherwise) upon a statement of justification that sufficiently articulates an acceptable reason or justification for failing to conclude or complete the registration prior to the application being submitted,” the policy read.
Irukera did point out, however, that financial institutions that hold licenses and are under the Central Bank of Nigeria’s regulatory oversight are exempt from registration and may obtain the necessary approval by submitting a written request seeking a waiver by demonstrating such exemption, including proof of license issuance by the CBN.
Although the FCCPC CEO acknowledged that loan apps continue to violate consumer privacy, harass consumers, use unacceptable nonstandard loan repayment/recovery strategies, and tack on unauthorized fees to loans, these practices have significantly decreased, according to the CEO of the FCCPC.
He said that with regard to digital lending, the Commission and JRETF would keep an eye on the market and uphold the law.
