Data Privacy: It is strictly prohibited for lenders to access borrowers’ personal information such as contact lists, call logs, and photos under any circumstances. Lenders are required to adhere rigorously to all provisions outlined in the Nigeria Data Protection Act (NDPA), ensuring complete compliance with the law to protect the privacy and personal data of borrowers at all times.
Prohibition of Harassment: The regulations explicitly and firmly ban any abusive loan recovery tactics, including all forms of harassment. They also strictly prohibit the use of a borrower’s personal contacts or photographs for the purpose of debt shaming or any other unauthorized and inappropriate reasons. These measures are designed to protect borrowers from unfair and intrusive practices during the debt recovery process.
Transparency: Lenders are required to clearly and prominently display all loan terms and conditions on their platforms, ensuring that borrowers have full access to detailed information. This includes, but is not limited to, the applicable interest rates, any additional fees, repayment schedules, and any other relevant charges associated with the loan. By providing this comprehensive disclosure, lenders help borrowers make informed decisions and promote trust throughout the lending process.
Fair Advertising: All promotional content must be based on truthful and accurate information and should never be misleading or deceptive in any way. It is essential that all claims made in advertisements are supported by evidence to ensure transparency and honesty.
Complaint Resolution: Lenders are mandated to implement effective and efficient customer complaint handling mechanisms. They are required to address and resolve the majority of complaints within a timeframe of 24 to 48 hours to ensure timely responses. Additionally, if consumers are not satisfied with the resolution provided by the lenders, they have the right to escalate their complaints to the Federal Competition and Consumer Protection Commission (FCCPC) for further investigation and intervention.
