House to investigate excesses of online loan providers

The House of Representatives has resolved to investigate the excessiveness of online loan providers in the country.

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

Mr Alabi, while presenting the motion, observed that to cushion the impact of the COVID-19, a rising number of Nigerians have resorted to digital lenders to sort out urgent financial needs as accessing loans from traditional financial institutions is often painstaking.

The lawmaker expressed concern that several lending platforms are operating outside the principle of lawful processing of personal data as required under the Nigeria Data Protection Regulation and other relevant provisions on data protection in Nigeria.

He said “Many online providers are exploiting the growing need for financial assistance and engaging in unfair collection practices by subjecting Nigerians to situations where their contacts are besieged with unsolicited messages from the online providers in a bid to force the borrowers to pay.

The recovery agents for the lending firms are mostly unethical methods to recover the borrowed funds from defaulting clients.

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Contributing to the debate, a member from Enugu State, Mr.

Amadi Denis advised the House to be cautious in dealing with the matter because there are regulatory agencies that license the operators.

Adopting the motion, the house mandated its committees on banking, communications, and human rights to investigate the matter and report back to the House within two weeks.

 
Nnenna.

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House to investigate excesses of online loan providers