Sycamore Obtains the Limited Interim Regulatory Framework and Guidelines for Digital Lending 2022 Licence Issued by FCCPC – Being the first Digital lending platform to do so in Nigeria.
On August 18, 2022, the Federal Competition & Consumer Protection Commission (FCCPC)
issued the ‘Limited Interim Regulatory Framework and Guidelines for Digital Lending 2022’.
This would allow the FCCPC regulate the digital lending industry against consumer right violation and maintain digital lending best practices in Nigeria.
The Pandemic and recent economic inflation has led to an increased need for credit and a rise of unchecked digital lenders operating outside the law. This has led to unethical loan recovery practices and violation of customers’ privacy which the FCCPC will regulate through the issuance of this Licence.
Sycamore is an online peer to peer (P2P) lending and financial inclusion startup that prioritises its users experience through its digital products and services. Consequently, the company sprung into action to obtain the FCCPC Issued licence, making her the first Digital lending company to do so in Nigeria.
Sycamore’s Chief Internal Control Officer, Chukwuemeka Ikpa, provided more insight on the process: ‘Payment providers like Paystack, Monnify, and Remita were instructed to deactivate all merchants that fail to get the FCCPC approval. To avert this we had to get the FCCPC approval filed in time.
Additionally, Sycamore filed its NDPR audit earlier in the year to NITDA to demonstrate our committed attitude to enabling a digital lending space devoid of scrupulous lenders. This really fast-tracked the possibility of getting this FCCPC approval without hitches.’
Sycamore will continue to comply with all provisions of the law with respect to third-party privacy rights and personal data, including data unrelated to principles of lending, as well as recovery practices that are consistent with fair lending principles provided under the law.
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