Top 25 Illegal Loan Apps In Nigeria

Today QUICK LOAN ARENA, the number 1 review blog for loan apps and digital banks in Africa brings you the comprehensive list of top 25 Illegal Loan Apps in Nigeria.

How Illegal Loan Apps In Nigeria Threaten, Blackmail Their Customers

Many borrowers have been speaking against the way and manner these illegal loan apps in Nigeria blackmail their customers and talking rudely to them like they don’t matter. Some go as far as referring to their customers and borrowers as ‘crazy’, ‘stupid’ and all manner of derogatory statements.

How To Recognise Illegal Loan Apps In Nigeria

One of the characteristics of these illegal loan apps in Nigeria include sending blackmails, defamatory messages and threats to customer, their families and their contacts’ list and thereby invading their data privacy.

Most of the illegal loan app staffs lack manners, they talk to customers anyhow, sending threatening and derogatory messages to them. They also invade their private contacts, sendingdefamatory messages to all their contacts

There are several ways to identify illegal loan apps operating in Nigeria:

10 Critical Ways To identify Illegal Loan Apps In Nigeria
  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. Very high interest 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

6 Warning Signs Common With Illegal Loan Apps In Nigeria

  1. No verification of previous repayment history
  2. Gives out loan to customes for 7 days tenure instead of minimum of 60 days by law
  3. Creation of sense of urgency and pressurizes into acting immediately
  4. Hidden or undisclosed charges/ fee amounts.
  5. Unsecured websites and in some cases no website at all
  6. No physical address disclosed by lender

5 Safety Measures Against Illegal Loan Apps In Nigeria

How To Protect Yourself Against Illegal Loan Apps 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.

List of Top 25 Illegal Loan Apps Operating In Nigeria

The following are a comprehensive list of top 25 illegal loan apps in Nigeria. Avoid them at all cost. Avoid them like a plague. Some of them have been banned by the Federal Government and a few have been banned by Google and Apple Play Store. However unfortunately many of them are still operating as at the time of writing this report, scamming and defrauding hapless and poor Nigerians in the name of quick instant lending loans. Be warned, dont fall for any of the following.

  1. LCredit
  2. 9credit
  3. LionCash
  4. Nkash
  5. ForNaira
  6. CycleCash
  7. Cashrain
  8. Mikoloan
  9. Supercash
  10. Xcredit
  11. ICoin
  12. PalmCredit
  13. CashLion
  14. GoCash
  15. Okash
  16. EasyCredit
  17. Easi Moni
  18. KashKash
  19. Speedy Choice
  20. BorrowNow
  21. FastMoney
  22. GetCash
  23. Gotocash
  24. Sokoloan
  25. AngelLoan

Nigeria freezes bank accounts of 30 Illegal loan apps, digital lenders

The Federal Competition and Consumer Protection Commission (FCCPC), says it has frozen no fewer than 30 bank accounts operated by illegal loan apps and digital lending companies in Nigeria.

Mr Babatunde Irukera, the Executive Vice Chairman of the Commission, said this at a media engagement in Abuja on Tuesday.

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Irukera also said that the Commission had engaged Google and Apple Stores to take down some other illegal loan apps from their stores, noting that there were certain processes required for that to happen.

Top Fake Loan Apps In Nigeria
List of Top Fake Loan Apps In Nigeria

He said that the Commission was currently engaging three major online lenders and loan apps in Nigeria which businesses had been affected by the Commission’s raid.

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“The day we conducted the raid, we have some limited information about the bank accounts that some of the loan companies operated.

“All the bank accounts that were provided were immediately blocked but these companies operate multiple bank accounts with multiple names.

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“Between the time we raided and now, we have discovered additional 30 accounts and all have been frozen and we will continue to freeze as we discover them.

“I am certain that with the actions that we have taken and the nature of the engagement we are having with the loan companies, at least three of the major ones that their businesses have been severely affected by either our search or the account closure, they are modifying.

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“It will take some time but I can assure you that the space is changing now,’’ he said.

Irukera called for an improved partnership with the media to educate members of the public on their consumer rights in order to achieve the objectives of the FCCPC.

FCCPC Directs Illegal Loan Apps Under Investigations To Stop Compounding Customers’ Interest

Meanwhile the Commission has also directed the illegal loan apps to stop compounding interest and loan collection practices during their period of undergoing investigations.

Threats from Illegal Loan Apps
Threats from Illegal loan apps in Nigeria

This disclosure is contained in a press statement issued by the Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera.

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Irukera in the statement warned that violators of this order will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).

Irukera, however, stated that the order does not include existing borrowers repaying legitimate loans under fair and acceptable terms and conditions or any modifications to previous terms and conditions that are considered onerous, inconsistent with prevailing law or general principles of transparency and fairness.

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About the Author: Femi Adeoya

Mr Femi Adeoya is a Chartered Forensic Accountant and a Certified Fraud Examiner. He has over 20 years professional work experience in accounting, finance and business management processes. As an Accounting Software Expert, he has implemented and supervised accounting solution set up of over 50 small and medium businesses in Nigeria. As a passionate blogger, Mr Adeoya is an ardent writer and communicationist. He is the CEO of QUICK LOAN ARENA (quickloanarena.com), the number 1 loan apps review website in Nigeria. He is very passionate about the quick and instant loan industry in Nigeria and has written over 200 reviews on different loan apps and digital banks in Nigeria, USA, Canada and UK.

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