FG Goes After Loan Sharks

By Uche Mbah

The Federal Government has began to probe the activities of the money lending industry, generally known as “Loan Sharks.”

For this purpose, the Federal Competition and Consumer Protection Commission (FCCPC) says the joint regulatory and enforcement committee, has swung into action.

The News Agency of Nigeria, NAN, reports that the joint committee is made up of representatives from the FCCPC, the Central Bank of Nigeria (CBN) and Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and other related offences Commission (ICPC) and National Information Technology Development Agency.

The Chief Executive Officer of the FCCPC, Mr Babatunde Irukera, told Newsmen in Abuja Monday, that all agencies involved are gathering and sharing information already.

He said that the committee received more than 500 electronic mails and information in respect of the investigation.

According to him, some already established infractions will shortly be proceeding to enforcement by either two or more of the agencies depending on the scope or what the enforcement operations will be, NAN reports.

“Yes, investigation has commenced. All agencies involved are currently exchanging information and gathering more.

“We have received approximately 500 additional emails at the created dedicated platform to gather information in furtherance of the investigation.

“Modalities include key operatives of the agencies meeting based on the joint investigative framework already developed and currently being analysed.

“Others that will continue under the investigation framework require additional information which is being procured by both direct and indirect means,” Irukera said.

According to him, the Committee would lead efforts to address multiple potentially dubious conducts of certain money lenders, otherwise known as loan sharks.

He, however, expressed regrets that the act was fast becoming a dominant and abusive practice targeting some of the most vulnerable in society.

He said: “Continuing complaints about questionable repayment enforcement practices including public shaming and violations of privacy have led to significant and understandable consumer aggravation and dissatisfaction.’

Loan sharks have become a major concern in the way they go about their businesses. This magazine can confirm that most loan sharks will blatantly refuse the loan payback, opting for perpetual payment of interests. And when there is a default, they proceed in what has been referred to as unconventional method of loan recovery resulting in public shaming and embarrassment of borrowers. Many use their influence in banks and telecom companies to block Bank accounts and beguine lines.