Insights, Business Advisory, Company Set-up and Regulatory Compliance

Cyberbullying by Loan App Operators: Ethical Practices in Loan Recovery and Consumer Rights Protection

INTRODUCTION

Money lending has long historical roots and financial technology has enabled the recent rise of digital lending platforms. These digital platforms provide quick and easy access to funds. Many digital lenders have emerged, providing credit access to individuals and MSMEs in dire economic straits. However, some digital lenders in a bid to enforce repayment obligations have deployed unethical loan recovery tactics like harassment and cyberbullying, which violates data privacy rights and consumer rights. Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) stepped in to arrest this situation by issuing the “Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022” ” (the “Guidelines”) to regulate digital lending. But despite these new guidelines, concerning activities persist in the digital lending landscape, which has been discussed and extensively analyzed in this article…

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Ifeoma Ezeribe

Managing Associate

Azeezat Ogunsola

Associate

Practice Key Contacts

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