DEON Consumer Lending Regulations

Regulations establish rules governing digital and electronic consumer lending in Nigeria. It mandates transparent loan terms and prohibits abusive debt collection practices for all users. The rules protect borrowers from predatory terms and ensure fair financial practices across the sector.

What Is This Policy?

Establishes rules governing digital and electronic consumer lending in Nigeria, protecting borrowers from predatory practices, opaque terms, and abusive debt recovery by digital lenders.

Who Does It Target?

Digital lenders (fintech apps, online loan platforms) Consumer borrowers using digital lending products Federal Competition and Consumer Protection Commission (FCCPC) CBN-licensed microfinance and finance companies

What Does It Aim to Achieve?

Mandate clear and transparent loan terms disclosure to borrowers Prohibit abusive, harassing, or privacy-violating debt collection practices Set maximum permissible interest rate caps and fee structures Establish a complaints and redress mechanism for aggrieved borrowers

Key Features

Mandatory Disclosure: Lenders must display total loan cost, interest rate, fees, and repayment schedule before disbursement. Debt Collection Rules: Prohibits contact of third parties (family, employers) for debt recovery without consent. FCCPC Registration: All digital lenders must be registered with and approved by FCCPC to operate.

Current Status

The DEON Consumer Lending Regulations are in force, having been issued under federal authority.

Legal Framework

Banks and Other Financial Institutions Act (BOFIA); Central Bank of Nigeria Act; Consumer Protection Council Act; Federal Competition and Consumer Protection Act 2018; CBN Framework for Regulatory Sandbox Operations