FairMoney has restated that it is committed to ethical loan recovery methods.
The firm stated this on the back of a recent announcement by the Federal Competition and Consumer Protection Commission about more regulation for the digital lending space in 2024.
According to the commission, it is set to release regulations meant to improve loan recovery methods in the country.
The Chief Executive Officer of the Commission, Mr Babatunde Irukera, said, “We must necessarily do the work no matter how hard it is to find a more sensible way to recover loans because I also agree that if these digital money lenders are unable to recover their loans and drop out of the market, it is a consumer protection problem because of those who need those types of short-term unsecured lending.
“So, we have to find the balance and so some of the regulations that will come out in 2024 will be a broader approach to responsible borrowing and responsible lending by individuals and corporates.”
Reacting to this move by the FCCPC, a spokesperson for the firm said, “FairMoney, as a reputable digital lending and financial services company, operates with high ethical standards and is committed to responsible lending and banking practices.”
The spokesperson added, “FairMoney has consistently upheld ethical practices and complied with regulatory standards.”
According to the FCCPC, harassment and defamatory messages in the sector have been reduced by about 80 per cent.
The head of the commission noted that the country was struggling with digital lending, although not alone.
He said, “India, Kenya, Brazil, Ghana, and Uganda are still struggling in digital lending. Some of these countries are taking lessons from what we have done.”
