To safeguard citizens from financial fraud, the Money Lenders Association (MLA) has backed the recent steps by the Federal Competition and Consumer Protection Commission (FCCPC) toward ensuring ethical operations in digital lending in Nigeria.
Following public outcry, the FCCPC has been delisting some fraudulent online loan apps, while placing some on its watch list.
Backing FCCPC, MLA, which frowned at the unwholesome activities of some unlicensed digital lenders, said the measures would “sanitise and safeguard people from online fraud and unethical practices, and foster a reliable digital environment, especially at this crucial time in the economy of our nation.”
In a statement signed by the MLA President, Gbemi Adelekan, the association advised the general public to exercise caution when applying for loans online, and deal only with licensed and approved Digital Money Lenders (DML).
It condemned the unprofessional and unscrupulous activities of some sorganisations outside the MLA, stating that it was incorporated in Nigeria primarily to advance “the money lending industry, and safeguard 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.”
As a guide, MLA urged the public to carry out know-your-customer (KYC) on digital lenders before applying for loans, and beware of “too-good-to-be-true” offers from operators, warning that any lender promising to approve loan requests “without a background analysis is definitely a red flag.”
According to the association, other key pointers to genuine lender include that it must be approved by the government and licensed by the regulator and also have a physical office as a registered business, which should be available on its website;
Similarly, it stated that most DMLs are visible on the web and social media, with customised email address(es) for communication and information, rather than merely Gmail or Yahoo.
Also important, it noted that a genuine lender will not request security deposit or a substantial payment before considering a loan application.
MLA further warned the general public to be careful of “apk loan links” from unsolicited telesales agents, recommending rather only the use of apps published on Google Play Store/Apple store.
