CITIZENS GAVEL, 600 OTHERS, PETITION CBN OVER HARASSMENT, BREACH OF DATA PRIVACY BY UNLICENSED MONEY LENDERS

In a concerted effort to combat loan app defamation in Nigeria, Citizens' Gavel a civic tech NGO that aims to create a world where justice delivery is fast and efficient regardless of economic or political demographics has submitted a formal petition to the Central Bank of Nigeria (CBN), seeking the immediate sanction of thirty unlicensed digital money lenders operating in Nigeria.

These entities, violating the consumer rights of Nigerians has raised concerns about their unlicensed operations and unethical practices.

The organization, dedicated to justice delivery, transparency, and legal support, highlighted the alarming trend of unlicensed digital money lenders resorting to illegal means, such as harassment, character assassination and data privacy breaches, to coerce customers into settling outstanding debts.

The petition, supported by over 600 complaints against these entities, pinpoints thirty companies engaged in unethical practices ranging from defamation, character assassination, cyber harassment, and violation of data rights while pursuing loan repayments from their customers.

“The loan apps in question are accused of offering exploitative interest rates with excessively high daily rates, leading to financial strain and challenges in loan repayment for many borrowers.

Furthermore, these entities are alleged to breach data privacy rights, invading customers' privacy and disseminating defamatory information”, Funmi Oderinde, a legal associate at Citizens’ Gavel, explained.

“We call for comprehensive and thorough investigation into the activities of these digital money lenders and the enforcement of strict penalties and sanctions for those found guilty of exploiting borrowers and violating regulations”, Nelson Olanipekun, Citizens’ Gavel's team lead said in an interview.

In the petition, the organization demands that the CBN issue directives to banks to withdraw their services from identified accounts associated with unlicensed and unregulated loan companies engaging in exploitative practices. 

Moreover, they called for compensation, public apologies, and accountability measures from the identified loan companies for the distress and harm caused to affected individuals.

Citizens' Gavel implores the CBN to take immediate action against the identified entities violating consumer rights, emphasizing the severe consequences, including increased suicide risk, depression, economic hardships, and traumatic experiences for affected individuals.

“There is the need for the CBN to fortify existing regulations, enact targeted measures, and develop comprehensive guidelines to combat the proliferation of unlicensed digital lenders, ensuring consumer protection in digital lending practices”, Citizens’ Gavel’s Operations Lead, Oluwafemi Ajibade, emphasized.

In conclusion, Citizens' Gavel calls upon the CBN to take decisive action by reinforcing regulations, instituting clear guidelines, and implementing stringent penalties. 

This coordinated effort is essential to curb the menace of unlicensed and exploitative digital loan apps, safeguarding the financial well-being of Nigerian consumers and ensuring a fair and transparent lending environment.

Citizens' Gavel looks forward to the prompt attention of the Central Bank of Nigeria to this matter.

Signed

Rachael Adio

Communications Associate, Citizens’ Gavel.