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How To Report Loan Apps In Nigeria

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Are you looking for how to report loan apps in Nigeria then you are on the best page that will assist you with that after you might have faced harrasement.

The ability of securing instant credit within minutes just after a few clicks on a loan app or a digital lending platform, and particularly without collateral or any form of documentation made these  lending apps and online banks a darling of many people. It’s a not just a great excitement but a revolutionary innovation to know that you can access instant cash of say N50,000 or N100,000 at the corner of your room within a few clicks on your mobile phone without visiting any bank and without any physical correspondence.

The Executive Vice-Chairman/Chief executive Official of the Federal Competition and Consumer Protection Commission, (FCCPC), Babatunde Irukera has vowed to examine the ways loan applications get and download the phone customer’s contact list.

Irukera who spoke at the Twitter area organized by The ICIR on the way fintech companies shame and threaten customers with the payment of loans, said the practice was illegal.

He added, “One of the key problems we are working on is the process for registering which allows apps to download contacts. Your telephone number is your personal information.

“That is among the problems that needs to be dealt with. There are instances of harassment, coercion and threats that violate the provisions of the FCCPC law. The law restricts the use of physical force or unfair methods in the process of the process of loan recovery.”

Speaking on the occasion, the head of Compliance at Gabs Financial Services Oyelowo Ayodeji said that his company checks its customers before handing loans to them.

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“Loan disbursement ” isn’t the only game. It’s the simplest because it is easy to create an application that grants loans. The final goal is recuperation from the loans. What’s important is the business model you employ to recover loans. We don’t make loans available to everybody and we conduct an in-depth investigation prior to giving out loans to the people. We have a targeted market for loans to.”

Further, Ayodeji said that his organization conducts checks to ensure that the customer is able to repay what he has received.

The firm enters into a contract with the client and employer of the client to ensure that loans are repaid.

The month before digital rights experts condemned government officials of the Nigerian Federal Government for allegedly not protecting citizens of Nigeria from actions by loan sharks.

A co-founder and researcher of Tech Hive Advisory, Ridwan Oloyede, claimed that the world of online lending was “a complete mess” as loan sharks succeeded in blackmailing families with low incomes.

A programme officer from Global Rights, Moyosoreoluwa Oluwasegun told Global Rights that the country had not been able to put its act in order “and that is the reason why these loan apps continue to operate with impunity.”

Oluwasegun added, “The government announced a decision to remove some apps from Play Store, but what we’ve observed is there’s loans which the government isn’t aware of. We now know that the loan apps can reach out to you through Whatsapp because they have access to the information of users in order to lure users to download the apps and then borrow money.”

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He said that the firms targeted people in the lowest levels of the pyramid who he described as lacking the money in their budgets to survive.

An ICR report found that this practice of publicly blaming people is clearly in violation of the provisions of Article 2.2 of the Nigeria Data Protection Regulation (NDPR) which prohibits unlawful share of data with third-party companies without legal justification.

In the report It was revealed that the ICIR looked at the Terms of Service for certain loan applications that are hosted on the Google Play Store. The apps comprised NairaPlus, EasyCredit, TrueNaira, GoCash, CashLion, FairMoney and LCredit.

How To Report Loan Apps In Nigeria

The best way to report any loan application is to visit the Federal Competition & Consumer Protection Commission website and report a violation.

How To Report  Loan Apps In Nigeria
How To Report Loan Apps In Nigeria

Ways To Know Fake Loan Apps In Nigeria

We’ve carefully curated 15 ways to spot fraudulent loan applications in Nigeria. We also have updated our list of fraudulent loans based on user feedback, the various investigations that we conducted, and a the report on privacy violations. The fake and unlicensed lending platforms, also called loan sharks in the following list, are accountable for the following illegal lending practices.

  1. Fake loan applications in Nigeria have access to and compromise contact photographs and numbers on their mobile phones. They employ them as a means of harassment and threats in the event of default by a customer.
  2. Incessantly urging customers to collect loans or to pay back loans even before the due date. Also, they send out threats. In certain cases, they will offer to transfer money to you without asking when you’ve had a loan from them and then demand repayment with hefty interest.
  3. Privacy of customers’ personal data and sending defamatory, threatening messages to them as well as their contacts
  4. Astonishingly excessively high interest rate and penalty.
  5. The deduction of processing or security deposit prior to the process of loan
  6. Interest is taken out prior to providing the loan.
  7. Incessant harassment and threats against customers
  8. Online Harassment of Customers and lenders and customers.
  9. Unscrupulous and illegal methods of the process of loan recovery.
  10. The use of derogatory and offensive words by loan app employees on the customers.
  11. Provides loans to customers for 7 days instead of the minimum 60 days as required by law.
  12. In the creation of a sense and pressures you to act immediately Sometimes, they even entice you into obtaining loans that are not yours.
  13. Unknown or hidden charges/ fees.
  14. Websites that are not secured and, often fraudulent loan applications in Nigeria do not have a website, and no physical address of their office.
  15. The majority of the time, they’ve no social media sites or contact phone numbers, no legitimate customer service or email address to reach them via email.
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