Online loans

Reps call for tougher action against unwarranted harassment – ​​Blueprint Newspapers Limited

The House of Representatives has decided to introduce stricter measures against online loan providers who have a habit of harassing supposed guarantors, who in most cases know nothing about these loans.

On Wednesday, the House instructed its relevant committees, including Banking and Currency and Communications, to investigate the trend and report findings, for further House legislative action.
It was a spin-off from a motion on the “need to apply strict measures to reduce excesses by online loan providers”, sponsored by Akin Alabi, who recalled that the considerable impact of the pandemic of coronavirus on the global economy has been significant, with evidence across all sectors of the economy, due to which “an increasing number of Nigerians have resorted to digital lenders to sort out their urgent financial needs”.

He noted that the increase has been further aided as accessing loans from traditional financial institutions is often a long and laborious process, adding that “there is a growing increase in the number of digital lending service providers who have apparently simplified the loan process, and increased access to loans remotely and quickly.

The legislator said that several lending platforms however operate outside the principles of lawful processing of personal data as required by the Nigerian Data Protection Regulations and other relevant provisions on data protection in Nigeria,” a loophole he claimed that many online loan providers exploit.

He said that due to the growing need for financial assistance, providers are engaging in unfair collection practices by subjecting Nigerians to situations where their contacts are besieged by unsolicited messages from loan providers with the aim of force borrowers to pay.