Experts Offer Solutions to Data Breach by Loan Sharks
Experts who brainstormed at the maiden Consumertrics workshop, held in Lagos, have advocated proper regulation of digital loan sharks.
The experts, who deliberated on the theme “Responsible Borrowing and Lending: Balancing Access to Credit and Consumer Protection”, condemned the unethical practices of many loan sharks and the usual breach of financial consumers’ data privacies.
Muyiwa Ayojimi, Chief Executive Officer of Consumertrics, sought for tougher application of consumer protection laws.
Ayojimi opined that banks’ stringent loan processes have erected barriers within the country’s huge credit market, thereby giving rise to the proliferation of illegal loan sharks.
Babatunde Irukera, Chief Executive Officer of the Federal Competition and Consumer Protection, (FCCPC), said that the practices of many digital lenders violate Section 17 of the FCCPC Act.
Irukera, represented by Marvin Nadah, deputy director- Enforcement at the commission, cited some of the violations to include high interest loan rate; payable default fee, and unethical loan recovery methods.
He revealed that the agency, the Central Bank of Nigeria (CBN), and other institutions are collaborating to ensure compliance to regulatory guidelines.
Professor Umar Danbatta, executive vice chairman of the Nigerian Communications Commission (NCC), represented by Clem Omife, deputy director consumer affairs said the CBN needed to take a cue from its Kenyan counterpart on how it is regulating the digital lenders effectively.
Ridwan Oloyede, a data privacy professional, stated that there are now trackers that could reveal a person’s exact location in some apps. Oloyede warned that consumers should be careful about granting people access to their mobile data as doing so makes them vulnerable to privacy invasion.
He charged the state licensing digital lenders to carry out strict oversight, like their federal counterparts.
Olawale Eleto, head of credit analysis for business banking, Union Bank of Nigeria Plc, acknowledged that digital lenders require strict supervision, but stated however, that some borrowers too are only out to defraud the lenders.
Eleto therefore called on both the lenders and borrowers to act responsibly.
Other panellists at the workshop included, Dr. Jamelaah Sharieff-Ayedun, managing director of CreditRegistry; Femi Daniel, Mastercard’s lead regional privacy counsel (for Eastern Europe, Middle East, and Africa); Clem Baiye, a former National commissioner with NCC and Independent Director, Transmission Company of Nigeria; Afolabi Solebo, the managing director of the Lagos state Consumer Protection Agency (LASCOPA); Olawale Eleto, Head Credit Analysis (for Business Banking), Union Bank of Nigeria Plc.
