FG orders defaulting money lending banks to stop interest, loan collection

The Federal Competition and Consumer Protection Commission (FCCPC) as part of its wide-ranging orders against unlicensed and illegal online money lending banks, has directed them to stop compounding interest and loan collection practices that are presently undergoing investigations.

This disclosure is contained in a press statement issued by the Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera.

Irukera in the statement warned that violators of this order will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).

Irukera, however, stated that the order does not include existing borrowers repaying legitimate loans under fair and acceptable terms and conditions or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness.

“In the interim, the Commission admonishes all the businesses that were subject of regulatory intervention on Friday, March 11, 2022, to cease and desist the interest compounding and loan repayment/collection practices that are the objects of this investigation,” the statement read.

“The Orders of the Commission are without prejudice to existing borrowers repaying any legitimate loans pursuant to fair and acceptable terms and conditions; or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness.

“The obligation to comply with the above extends to all operatives, employees or agents of the affected businesses,” it added.