Friday, September 30, 2022

Akin Alabi sponsors bill against unsolicited messages by online loan sharks

Illegal online loan companies are accused of using the culture of shaming to enforce loan repayment.

• November 9, 2021
Akin Alabi
Akin Alabi

A bill seeking to stop online loan sharks from sending unsolicited messages to third party individuals is now before the House of Representatives.

The sponsor of the bill, Akin Alabi (APC-Oyo), wants the Central Bank of Nigeria to develop a feasible regulation that will curb the unethical activities of online loan providers.

In a letter addressed to speaker Femi Gbajabiamila dated November 9, 2021, Mr Alabi want states to protect third party individuals from receiving unsolicited messages.

He explained that online loan providers were exploiting the growing need for financial assistance and engaging in unfair collection practices by subjecting Nigerians to situations where their contacts are besieged with unsolicited messages from loan providers.

He said that Nigerians were turning to digital lenders to sort out their financial needs that have been worsened by the negative effect of the COVID-19 pandemic.

The lawmaker lamented the growing culture of many online loan services resorting to shaming as a tactic to get their customers to repay loans.

He urged the National Information Technology Development Agency (NITDA) to ensure that all online loan providers adhere strictly to Nigeria data protection regulation.

The federal lawmaker prayed the Speaker to approve the bill for presentation on the floor of the green chamber.

There are several media reports of how illegal online loan companies with high-interest rates, use crude methods to enforce loan repayment from their customers.

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