How To Stop Online Loan Harassment In Nigeria [2023]

Online loan harassment have become so rampant in Nigeria especially after the ugly Covid 19 pandemic crisis that shook the entire globe and threw millions of people into the jobless circle with the resultant effect of many being unable to cater for their immediate needs. Many families have consequently resorted to patronising loan apps for cash emergencies in order to meet unexpected expenses.

Loan shark and online loan harassment is the act whereby a loan app, digital platform or lending organization offers credit loans at extremely high interest rates, has extremely strict and unethical loan recovery methos, and additionally enjoys using threatening, shaming and defamatory messages to its borrowers and customers, including their phone contact list and family members and generally operates outside the ambit of the law.

Many of the loan apps advertising their wares as urgent lending platforms without the need of collateral, documentation or physical presence in their office to get a loan, have gotten many borrowers trapped, being unaware that they were dealing with “potential loan sharks and online loan harassment in Nigeria”, many of whom would later come out to expose their true pictures.

Online loan harassment is further made possible due to the largely unregulated digital lending industry in Nigeria, no thanks to the Central Bank of Nigeria (CBN), and other financial authorities that have largely failed in their regulatory roles to protect money borrowers from these dare devil loan sharks, pretending to be legitimate loan app, who daily harass their victims, and compromise their data privacy which they swore to protect.

A recent Punch Editorial report states: The recent clampdown by regulators and law enforcement agencies on the activities of illegal online loan sharks operations points to the deteriorating economic situation in Nigeria. Tellingly, it reiterates the weakness of the Central Bank of Nigeria in asserting its writ as the highest financial sector regulatory agency in charge of the monetary flow and lending in the country. Also in focus is the regulatory efficiency of the Corporate Affairs Commission, the National Information Technology Development Agency, the Independent Corrupt Practices and Other Related Offences Commission, and the Ministry of Communications and Digital Economy.

Clearly, due to the parlous state of the economy and the failure of the agencies concerned to efficiently regulate Nigeria’s technological space, the illegal online lenders have been able to thrive. (And has constituted themselves into loan shark harassment in Nigeria, daily hurting and inflicting terrible pains to their customers and borrowers, some of whom have threatened suicide in recent reports). This is dangerous; the relevant agencies should quickly clean up.

How To Stop Online Loan Harassment In Nigeria?

How To Report Online Loan Harassment In Nigeria

People taking digital loans should not be afraid of such lending apps, after they have taken loans from them and are being harassed and threatened, instead they should report the incident and detail their negative encounter to the consumer right agency led by the FCCPC by sending an mail to lenderstaskforce@fccpc.gov.ng.

Investigations have shown that consumers do not go through privacy policy when installing or using a loan app.
Nigerians care less about the privacy policy on Google Play Store, Apps Store or WhatsApp.

The privacy policy on the Google Play stipulates that apps that offer financial services on its platform should disclose to users what it intends to use their personal information for. If found that the loan apps violates your privacy you can report the app for inappropriate misconduct with substantial evidence for take down of the Application.

How Loan Shark Harassment In Nigeria Started

The regime of loan shark harassment in Nigeria came into force due to the proliferation of urgent quick cash loan apps and instant, fast approval lending platforms as a means of raising emergency funds which became occasioned by the dismal economic downturn in the country, joblessness and resulting poverty have changed the entire borrowing dynamics. Faceless loan sharks hosted on Google Play Store and some on App Store, some of them owned by phony foreign Chinese shylocks have flooded the digital space and swindling poor and innocent Nigerians of their hard earned cash in form of loan credit.

Online loan shark harassment have become so common and are preying on Nigerians, leading some to commit suicide. Their modus operandi, according to a Punch Report is to give seemingly cheap credit to impoverished citizens, ostensibly under less-than-stringent, tempting conditions, some of which defy the basic canons of lending. In reality, both the pricing of the loans that lack full disclosure and the lax terms and conditions are all subterfuges to hoodwink unsuspecting beneficiaries to take the bait. In the end, the victims realise too late, the full extent of their burden when repayment starts.

There is the imperative of interrogating how the country descended to this mess. Bluntly, it is hardship. The unpleasant trend of citizens abjectly borrowing for basic consumption from unscrupulous loan firms, who mete out degrading treatment to them when they default, comes from privation among the populace.

Although some of the affected persons are victims of their own greed, the bitter reality is that it is increasingly becoming difficult for many Nigerians to survive due to the battered economy. Businesses are collapsing and industries are shutting down due to the harsh economic climate. Some 21.76 million persons were unemployed by late 2021, according to the National Bureau of Statistics.

Loan Shark Harassment In Nigeria: How They Operate

One of the modus operandi of the practice of loan shark harassment in Nigeria includes the sending of blackmails, defamatory messages and threats to their customers, their family members and their contacts’ list involving a blatant, unprovoked invasion of their data privacy. Even before your loan is due, loan sharks start warning you and sending threat of impending defamatory messages to your contacts and family members if you don’t pay on due date.

Most of these lending apps’ staffs lack communication ethics as they speak in dehumanising manners to customers, calling and sending shame and defamatory messages to their contact list and referring to them as “criminals”. This should be completely condemned and pronounced unethical and unacceptable in sane climes like Nigeria.

The following are ways loan shark harassment in Nigeria are being practiced and how it can be identified.

1. Accessing the contact’s number and picture stored in mobile phone.
2. Misuse of contact numbers and pictures saved in mobile.
3. Invading customers’ data privacy and sending defamatory and threatening messages to them and their contact list
4. Extremely high interest rate and penalties.
5. Deduction of processing and/or security deposit before loan processing
6. Interest deducted before providing the loan.
7. Constant harassment and threats on customers
8. Online Harassment.
9. Harsh and unethical means of recovery.
10. Use of rude and derogatory statement by loan app staff on customers

5 Ways To Protect Yourself Against Loan Shark Harassment In Nigeria

1. Check for lenders contact information like phone number, email address and physical address.
2. Verify the online reviews by customers given for the lender.
3. Check the professional reviews on trust worthy lenders.
4. Make sure the loan app has been properly licensed by the Central Bank of Nigeria (CBN)
5. Review the app permissions regularly and give access permissions ONLY tor the purpose of the loan applied for.

What happens when you don’t pay a loan shark?

What happens if you can’t pay back a loan shark? Loan sharks ensure they get their money back through the threat and use of force. “If you don’t pay the interest rate, they’ll break your arm or break your leg,” says an analyst. “Your interest keeps compounding, so it gets to be a very dangerous situation. Though they can’t take you to court, but they can harass you severely online and expose all your data, photos, bank details to the public to force you to pay.

Can You Stop Loan Shark Harassment In Nigeria?

The simple answer to this question is yes! The easiest way to stop loan shark harassment in Nigeria is to pay any outstanding loan you have previously borrowed from any digital lender. Once you have paid, ensure you don’t collect any more loan from the loan sharks again. There are many reputable loan apps in Nigeria you can patronize.

Additionally if you downloadeded a loan app and have collected a loan from the platform, you can no longer stop the app from accessing your contact because it is already safely stored in the app’s external database. Even though you later uninstall the app, it is still with them. The best you can do is stop collecting their loan and repay any outsanding loan to avoid any further harrassment, threat or blackmail. Then uninstall the app.

How do I get loan apps to stop harassing my contacts?

To stop loan apps from harassing your contacts or calling/sending messages to their phones, do the following:

1. Don’t download any loan app on your phone.
2. If you have already downloaded a loan app, don’t approve or collect any loan from the platform.
3. If you have already collected a loan from the platform, delete and uninstall the app immedialy from your phone and do not reinstall or collect any further loan from the credit platform.
4. Only download and patronize reputable loan apps that will not send shame or defamatory messages to your contacts, even if they have your phone contact access.

Can a loan app access my contacts if uninstalled?

A loan app cannot access your contact list if you already uninstalled the app from your phone. However it’s likely your contacts have been downloaded and stored in the app’s database outside your phone if you ever collected a loan from them. To stop loan apps from accessing your phone contacts again, safely uninstall the app and do not patronize them anymore.

Can loan apps come to my house?

A loan app cannot come to your house. However if you already downloaded their app and collected their loan, they can access your contact list, databases, BVN, profile details and can report you to the credit bureau and blacklist your name against your BVN if you default on your loan. To stop loan apps from accessing your phone contacts again, safely uninstall the app and do not patronize them anymore.

How do I stop loan shark harassment and deprive them access from my contacts?

1. Don’t download any loan app on your phone.
2. If you have already downloaded a loan app, don’t approve or collect any loan from the platform.
3. If you have already collected a loan from the platform, pay back any outsanding balance, delete and uninstall the app immedialy from your phone and do not reinstall or collect any further loan from the credit platform.
4. Only download and patronize reputable loan apps that will not send shame or defamatory messages to your contacts, even if they have your phone contact access.

Can Denying Loan Apps Permission Stop Them From Harassing me, Calling or Messaging My Contacts?

YES. Once you deny a loan app permission to access your contact list, you automatically stop them from accessing, calling or messaging your contacts and thereby prevent any further harassment from the loan sharks. However if you deny any lending platform permission from accessing your contact, your loan will NOT be approved and you won’t get any funding from the loan app. So you have to decide on which one is more important to you.

How Do I Prevent Loan Apps Like Sokoloan, LCredit and other fake loan apps From Harassing Or Messaging My Contacts?

To stop loan apps like Sokoloan, LCredit and other illegal apps from accessing your phone contacts or messaging your list, do the following:

1. Do not download their apps on your phone.
2. Do not approve or collect any loan from them.
3. Do not give them permission on your phone to access your contacts. That essentially means you cannot have access to collect their loans.

Conclusion

To report online loan harassment in Nigeria, detail your experience in an email to the Federal Competition and Consumer Protection Commission (FCCPC) through lenderstaskforce@fccpc.gov.ng. This is according to the Executive Vice Chairman/Chief Executive Officer of the commission, Mr Babatunde Irukera.