House To Investigate Excesses Of Online Loan Providers

The House of Representatives has decided to look into the country’s excessive use of online loan providers.

The resolution was included in a motion sponsored by Mr Akin Alabi, a member from Oyo State, on the urgent need to curb the excesses of online service providers.

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While presenting the motion, Mr Alabi noted that, in order to mitigate the impact of the COVID-19, a growing number of Nigerians are turning to digital lenders to meet urgent financial needs, as getting loans from traditional financial institutions can be difficult.

Several lending platforms, according to the lawmaker, are operating outside of the principle of lawful processing of personal data, as required by the Nigeria Data Protection Regulation and other relevant data protection provisions in Nigeria.

“Many online providers are exploiting the growing need for financial assistance and engaging in unfair collection practices by bombarding Nigerians’ contacts with unsolicited messages from the online providers in an attempt to force borrowers to pay,” he said.

The lending firms’ recovery agents use mostly unethical methods to recoup borrowed funds from defaulting clients.”

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Mr. Amadi Denis, a member from Enugu State, spoke during the debate and advised the House to proceed with caution when dealing with the matter because the operators are licensed by regulatory agencies.

The House mandated its banking, communications, and human rights committees to investigate the matter and report back to the House within two weeks after adopting the motion.