Crackdown on Illegal Loan Apps: Reps Demand Immediate Action
The Nigerian House of Representatives has called for the closure of “illegal” loan apps that have been allegedly used by criminals to exploit unsuspecting borrowers.
The lawmakers are concerned about the growing number of unregulated loan applications that often charge exorbitant interest rates and use aggressive tactics to recover loans, including harassment and threats.
Many of these loan apps have been criticized for violating privacy laws by accessing borrowers’ contacts, and in some cases, blackmailing them into repaying debts.
The apps have also been linked to criminal activities, with reports of fraudulent practices and the targeting of vulnerable individuals who are unable to meet repayment deadlines.
The demand for the closure of these apps reflects a broader concern about the need for stronger regulation in Nigeria’s digital lending sector.
Lawmakers are pushing for stricter enforcement of existing laws and regulations to protect consumers and ensure that loan apps operate transparently and ethically.
The move is part of ongoing efforts to combat financial crimes, protect personal data, and provide a safer borrowing environment for Nigerians.
The Central Bank of Nigeria (CBN) and other regulatory bodies will likely be involved in taking action against these illegal apps, ensuring that they comply with established financial and privacy laws.