Loan Apps Face Scrutiny as FCCPC Enforces Lending Regulations
The Federal Competition and Consumer Protection Commission (FCCPC) has initiated the enforcement of its Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (2025), signaling a crackdown on unethical practices within Nigeria’s burgeoning digital lending sector. This move follows the public release of the regulations and aims to address growing concerns surrounding aggressive debt recovery tactics and breaches of data privacy perpetrated by numerous loan applications.
Curbing Harassment and Data Violations
According to a statement released on their X (formerly Twitter) page, the FCCPC emphasizes that these regulations are a direct response to the rapid growth of digital lending platforms in Nigeria. The regulations are designed to combat a range of issues, including exploitative lending practices, frequent violations of borrowers’ data privacy, and the prevalent use of abusive and publicly shaming debt recovery methods. The FCCPC aims to tackle anti-competitive behaviour exhibited by certain digital lenders and their partners operating within Nigeria’s digital credit market.
The enforcement of these regulations marks a significant step towards creating a fairer and more transparent digital lending environment in Nigeria. By addressing unethical practices and prioritizing consumer protection, the FCCPC aims to foster responsible lending and protect vulnerable borrowers from exploitation.
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