Reps to probe online loan providers’ excesses
The House of Representatives yesterday resolved to investigate the excesses of online loan providers. This followed the adoption of a motion by a member from Oyo State, Akin Alabi, on the urgent need to curtail the excesses of online service providers. Rep Alabi, observed that to cushion the impact of the COVID-19, a rising number […]
House of Representatives
The House of Representatives yesterday resolved to investigate the excesses of online loan providers.
This followed the adoption of a motion by a member from Oyo State, Akin Alabi, on the urgent need to curtail the excesses of online service providers.
Rep Alabi, observed that to cushion the impact of the COVID-19, a rising number of Nigerians have resorted to digital lenders to sort out urgent financial needs.
This, he said, was because access to loans from traditional financial institutions is often painstaking.
The lawmaker expressed concern that several lending platforms are operating outside the principle of lawful processing of personal data as required under the Nigeria data protection regulation and other relevant provisions on data protection in Nigeria.
According to him, many online providers are exploiting the growing need for financial assistance and engaging in unfair collection practices by subjecting Nigerians to situations where their contacts are besieged with unsolicited messages from the online providers in a bid to force the borrowers to pay.
Alabi also expressed concern that the recovery agents for the lending firms used mostly unethical methods to recover the borrowed funds from defaulting clients.
In his contribution, Rep Amadi Denis urged caution on the part of the House, saying there are regulatory agencies that license the operators.
Adopting the motion, the House mandated its committees on Banking, Communications and Human Rights to investigate the matter and report within two weeks.
The House urged the Central Bank of Nigeria to make “feasible regulations to curb the extremism of unscrupulous online loan providers in Nigeria.”