MLA backs FCCPC’s clampdown on unethical digital lending

In a robust move to ensure ethical practices within Nigeria’s digital lending space, the Money Lenders Association (MLA) has endorsed the Federal Competition and Consumer Protection Commission’s (FCCPC) recent enforcement actions.

The FCCPC, which has been vigilant in its oversight, announced on February 5, 2024, its plans to ramp up enforcement against Digital Money Lenders (DMLs) who violate guidelines set by the inter-agency joint task force.

The MLA’s support comes at a critical juncture for the nation’s economy, aiming to create a secure digital environment and protect consumers from online fraud and unethical lending practices.

The President of the MLA, Gbemi Adelekan, in a statement expressed solidarity with the public against the misconduct of certain unlicensed and illegal digital lenders.

Adelekan emphasised that the MLA, which is fully incorporated under Nigerian law, is committed to advancing the money lending industry while ensuring the protection of consumers.

The Association has condemned the unprofessional actions of some lending organisations, clarifying that such entities are not part of its membership.

The MLA’s backing of the FCCPC’s measures signals a unified stance within the industry to foster trust and integrity in digital financial services.

He said that MLA condemns in its entirety, this unprofessional act perpetrated by some unscrupulous lending organisations (not our members).

Adelekan said, “Money Lenders Association is duly incorporated under the Laws of the Federal Republic of Nigeria, with its primary objective being the advancement of the money lending industry, and safeguarding the interests of the public and customers using our lending platforms.

“The Association actively collaborates with FCCPC and the Government to address the practical challenges faced by members of the public and our members, in their daily operations.

“As part of our commitment to ethical practices, members of our Association adhere to a comprehensive Code of Practice which facilitates self-regulation of our activities, to ensure compliance with FCCPC and Government regulations, in order to promote trust and confidence.”

They enjoined the general public to be careful and carry out their KYC on Digital Lenders before applying for loans.