Loan recovery and borrowers’ unwillingness to pay
Giving out loans to members of the public without security or guarantee can be quite a very risky venture because the nature of an average Nigerian is to be severely pushed before he pays back whatever he or she owes. On the contrary, the measures employed upon by certain lending apps and loan sharks for their loan recovery is really a headache to contain.
When a loan is given out, totally unsecured, basic information are required from borrowers like contact address, BVN, NIN, emergency contacts, etc. The worrisome way of recovering loan is causing harm than good because it’s laced with threats, disrespect, defamation and what have you. If you give loan to someone who gave his home address, office address, emergency contact, etc and when he fails to pay, and getting to know that such information are not used at all but rather inhuman methods adopted straightway.
The question now is why would loan apps collect information such as home and office address, phone contacts, etc and not use them at all but result to threat and calling borrowers’ contacts in order to recover the loan, why then did they collect these information?
The loan apps in some cases claim they are backed up by law to use these methods to recover the loan but in actual fact, is this right? The loan apps obviously has to be cautioned by regulatory authorities to be more professional in carrying out their duties and recovering their loans.