Representatives Call for Tighter Measures Against Unreasonable Harassment – Blueprint Newspapers Limited
The House of Representatives has taken tougher action against online loan providers who harass alleged guarantors who, in most cases, are unaware of such loans.
The House of Representatives on Wednesday mandated its relevant committees, including the Banking and Currency Committee and Communications Committee, to investigate the trend and report the results for further House legislative action
This was a result of a motion for the “need to apply tough measures to limit the excesses of online loan providers,” sponsored by Akin Alabi, who recalled that the far-reaching impact of the coronavirus pandemic on the global economy was significant, with evidence in across all sectors of the economy, which is why “an increasing number of Nigerians have turned to digital lenders to meet urgent financial needs”.
He noted that the increase was further supported as access to credit from traditional financial institutions is often a long and arduous process, adding that “The number of digital credit service providers who seem to have simplified the lending process is growing steadily. and improved access to credit remotely and quickly. “
Legislators said, however, that several lending platforms operate outside of the principles of lawful processing of personal data required by the Nigerian Data Protection Regulation and other relevant data protection regulations in Nigeria, “a loophole that many online lending providers are exploiting, he argued.
He said that due to the growing need for financial assistance, vendors are engaging in unfair debt collection practices by exposing Nigerians to situations where their contacts are besieged with unsolicited messages from loan providers in an attempt to force borrowers to pay.