The harassment and defamation of borrowers from digital lending companies, popularly known as loan apps, is far from over despite the recent regulatory moves by the Federal Competition and Consumer Protection Commission (FCCPC).
Nairametrics gathered that some of the loan apps registered by the FCCPC continue to defame their customers through the usual practice of sending messages to contacts of their debtors. This also contradicts a recent Google policy forbidding loan apps from accessing their customers’ photos and contacts.
While Google is collaborating with the FCCPC to ensure that loan apps in Nigeria adhere to ethical standards, apps currently listed on the Google Play Store are still among the culprits according to our findings.
Threat messages to customers
A customer who shared his experience with one of the loan app providers listed on the Play Store, fearing that he might be defamed at any time, showed message evidence from 9jcash to Nairametrics which read: “You will regret collecting this loan now.”
Another registered loan app provider, NowNowmoney, sent the following message to one of its customers earlier this week:
- “Our agents have been calling and yet payment has not been made. Make a transfer now to the Wema Bank account provided and save your reputation. Failure to make payment now might ruin your reputation and respect. Do the right thing now and clear your debt.”
Steady Cash another provider, which is also on the Google Play Store and registered by the FCCPC, sent this to one of its customers:
- “It is either you make your payment now or face the consequences because we are sick and tired of your lies, your BVN will be exposed, and your account placed on auto debit. Your contacts will be informed of your shameful exhibition…Please be warned.”
In another more disturbing development, a customer of Mint Credit lamented how his entire family is currently being defamed by the loan app provider for a loan he took by sending messages to all his contacts, sighted by Nairametrics, which read;
- “Beware of the family of…. (The debtor’s family name is mentioned), mother, father, and sister are chronic criminals and fraudsters. They dupe a company with some money, and they are refusing to pay. He has been declared wanted. If you know him, tell him to pay his debt.”
All efforts by Nairametrics to get comments from the operators of NowNowmoney, 9jacash, and Steady Cash proved abortive as emails sent to them were not replied to as of the time of filing this report.
Meanwhile, checks by Nairametrics revealed that Mint Credit has been removed from the Google Play Store and might not be among the registered loan apps by the FCCPC.
Data protection concern
The activities of the loan app providers have also been found to constitute a breach of the country’s data protection law. According to the National Commissioner of the Nigeria Data Protection Commission (NDPC), Dr. Vincent Olatunji, many digital lenders in the country have been reported for breaches and are currently under investigation.
Section 35 of the Nigeria Data Protection Act, which was recently signed into law by President TInubu, states that
- a data subject (individuals whose data are being exploited) has the right to obtain from a data controller, without constraint or unreasonable delay
- confirmation as to whether or not the data controller, or a data processor operating on its behalf, is storing or otherwise processing personal data relating to the data subject, and where that is the case the subject has the right to know
- The purposes of the processing; the categories of personal data concerned; the recipients or categories of recipients to whom the personal data have been or will be disclosed
- in particular recipients in third countries or international organizations…”
None of these is being complied with by the loan app providers as of now.
FCCPC’s interim registration framework
According to the Chief Executive Officer of the FCCPC, Babatunde Irukera, the continuous violation of people’s privacy and unethical recovery practices led to the introduction of an interim registration framework for digital lenders in partnership with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), and the Nigerian Communications Commission (NCC).
At the close of the registration on March 27, 2023, the FCCPC released a list of 173 digital lending companies that had been registered. The companies were said to have provided information regarding their interest rates, the type of information they access from their customers, and sources of their money, among others.
In June, the Commission announced its intention to reopen the registration to allow new digital lenders that just came up to be registered. And as of June 26, the total number of registered digital lenders in the country had increased to 180.
The FCCPC CEO, however, noted that registration does not mean that all the registered companies are law-abiding, but it will significantly reduce how they violate the law. According to him, with the information provided by the registered companies, the Commission can easily trace them and hold them accountable if they violate any law.
All loans app should be cancelled except some that are reliable like fairmoney, this things will kill so many people, because we have bad economy, to repay bring upon so many challenges, then after defamation of family names, will they still collect the money, again after repayment of the spoiled name can, bring back the good for the person.
I think what government can do is to give a directives that if any of those stupid App does that they should pay for defamation of names. Because if eventually that person repay will they bring back the good names
They should all be scrapped except branch, fairmoney and carbon. All the other ones defame and they charge arbitrary interests. Nigerians are getting depressed and dying because of these loan apps. They should be stopped now! Nairaland, aje loan, loannaira, 9ja credit, ease cash, ease loan etc licences should be revoked asap. They’re ruining lives!
Deloan app is the most terrible one. For a loan that will be due on a certain date and they sent messages out on the same day. That I stole their money. Just 10k fa. I have been calling their number but it’s switched off since that day.
How about you guys behavior towards repaying the loan that was collected. Forget about the country situation we are our own problems. Majority takes this loan with the intention of not paying back
If you guys can’t find a more secure way of getting your money then shut down your business because even after defamation of character, who no go pay no go pay
SPEAK FOR YOURSELF. LOAN APPS HELPS ALOT OF NIGERIANS,FINE IT OS THE SITUATION OF THE COUNTRY BUT DID YOU KNOW ALOT OF PEOPLE TAKE LOAN FROM DIFFERENT APPS AT A TIME JUST TO SAVE LIVES(MEDICATIONS,HOSPITAL BILLS AND ALL).
Plenty cash did worse to me cos of 320naira overdue posted my pics as a ritualist nd r I p on my girl’s pix.they r very terrible ppl
Loan app, the way those app operate in the country is not lawful, they lie that they offer 2% interest, and after u might have register, they will now change u 50% of amount they disburse, secondly, they begin to treating u for blackmail and harassment, they are not helping people, giving 10000 to pay 15000 just within 7day , is that a help?
Why take a loan with an intention of being chased around to pay back?Nigerians must be sincere for once.
Thank God for your life bro, you don’t know what people are facing out there
Toyin
Loan app like Tiktok credit, cashdoor, nownow are terible
The useless Chinese are taking advantage of the customers and unemployment in this country.
The rate they charge is terrible and insults are uncalled for.Their untrained and riffraff staffs are the worst thing that have ever happened to the finance sector.
They should be shut down in found wanting.
Good evening everyone my name is bright ekefre I apply for a loan in 9cash and other loan app but I I did not pay in time they use my picture an post it. On WhatsApp they wrote breaking news Ithis person stole company money an run away is wanted Dead or alive all my friends start calling an bring police to my house this is very bad
None of them is to be trusted. My experience with fairmoney presently now is bad I collected loan from them and the loan has been paying gradually as we agreed on. They send message to me that I should collect top up and I said no that am still under one loan. Series of calls and messages I said no I don’t want and one of their staff went and activate the loan without my conscience. It’s was a bad experience to me.
Some of these loan App are 419,,, they are all criminals,, they should be scrap off please,,, government should take actions immediately,,,I mistakenly sent #45.000 instead of #4.500 to easimoni since January,,up till now, they refuse to refund my remaining balance,,,, one even post my pix as a wanted criminal for #5000,,, just two days overdue,,, it’s so inhuman
Obviously, any excesses in collections should be curtailed, but…
IF NIGERIANS REPAY THEIR LOANS, THEY WOULDN’T BE BOTHERED!
Even before due date 9jacash had started sensing defamatory messages and even calling people in my contact. They should be checked and sanction. Now now money, 9jacash.
My experience with this app loan is not good at all imagine calling me to make payment when is not my due date and when I try telling them that is not my due date ,I was given the insult of my life and one even called my dad to insult him and later they sent dubious massages to my contacts telling them that I raped a 3 years old girl gave her HIV and also used her ritual. And they sent it to all my contacts just imagine the nonsense.
Wecredit, longcash, fastcredit, lendnaira, plenty cash,beauty credit, prety credit, kudi credit,lifeline, swift credit, money tree, somemoney, cashon, myloanplus, i have documented evidences and all the agent numbers who are doing this deframing.
Please they all should be scrapped
Wait, did you borrowmoney from all these loan apps and refused to repay? Aren’t you a criminal yourself?
Ask him pls . God bless you
Most of the loan apps are shylocks & criminal exploiters. They take advantage of seeming lawlessness in Nigeria to charge arbitrary undisclosed interest on loans granted to borrowers. Some are so impatient to wait for the loan due date before harassing, intimidating & threatening borrowers for repayment. They adopt unacceptable criminal recovery processes including posting unprintable, defamatory messages about borrowers to all their contacts. Examples of such messages are: “the borrower is an HIV/Aids carrier, the borrower is declared wanted for criminal offence, the borrower is on the run with our money, the borrower is a thief, etc”. They also harrass innocent contacts to help them recover the loan otherwise he/she will be iñcriminated alongside. In my opinion, the need to be strictly regulated & cautioned to avoid turning Nigeria to a banana republic. The source of their money also should be queried.
FCCPC should crack down on them.Some have no known addresses and their agents are ill-mannered,rash and untrained.The Chinese owners are not complying with regulatory provisions so why allow the loan apps free reign in Nigeria as if there is no law.Defamation processes need to be engaged in Court to bring their crude debt recovery methods to a halt.When suits are instituted and damages claimed,they will be more cautious. FCCPC and GOOGLE play store must do more enforcement if they cannot be scrapped outright.
Dear sir,
Time have Nigeria Government have stop this evil loan from chana the most useless loan is cash door loan need to stop operations in this country, only one day over due they start sending evil messages, they need to stop operations in Nigeria
A lot of customers need to be treated this way as nobody wants to open a business and see it ruined. Someone gave you money on the agreement of paying back at a pre-agreed date and an agreed upon interest rate. Even though a lot of people will say they were not aware of the fine print. But that is your own fault for not reading it or getting them to give you full disclosure. That being said if you have any reason to default I believe it is not the date of repayment that you realize that so approaching them with documented evidence will be better than ghosting them and not expecting them not to react. After all it is someone’s money that you took and there was an agreement to pay it back. If you have ever worked in a financial institution you know where they are coming from.
God bless you and because of their nonchalant behavior they keep making others loose their jobs . Majority takes the loan with the intention of not paying back
Honestly am going through alot,this app called deloan,tested all my family and friends,even to my dad,saying that am owning and they declared me wanted. Not only them I still have some of them .app like bear wallet,super loan,speedloan, pasa loan,xcrosscash, GB loan,Nairaloan,,treating me.please Nigeria government should remove all this app and leave the usefully and verified once like breach…
Please FCCPC please certain personal loans apps are seriously causing havoc. They are going as far to send defamatory messages to contacts. These apps lenders are not meant to do but they are doing so. Please the following apps carry out this illegal functions SwiftNaira, imoney, PlentyCash, KudiCash Wecredit, FastCash,9ja Cash I have evidences . There is no available portion for that I would have pasted it.
Thank you FCCPC in advance
Where there is no law there is no sin All loan apps have laws guiding them . Does Nigerian financial transaction law permit them to defame or disgrace customers ?
Is there no procedure provided by law for recovery of loan ? Must a third party not privy to a contract be harassed and humiliated by loan agents ?
You expose customers to shame and still want to take your money back ? So follow legal means to recovery than humiliating people who are already impoverished
A lot of this apps have ruined lives and I’m a victim. It’s not everyone that wants to take their loans and not return it and those defending them I pray you will never be in any situation that will make you make desperate to get loan from them because you will regret it. Is it the calls and chats from their mannerless Customers Reps you need to experience or Sending their money and it doesn’t reflect on the app and you must pay back after much explanation and evidence or You paying willing when you have their money even before due date and still be auto debited later? The point is loan apps should be scrapped and people should get loans from their banks because these app are doing more harms than helping. We should go back to era of lending from people we know and even Microfinance banks and collaterals should be collected and Guarantors should be brought the normal way. This loans apps have no address and I heard from a confirmed source that they employ Secondary School and Undergraduate in a spacious room or warehouse and offer mouth-watering salaries which makes them desperate and give targets to call customers, chat and text them to pay by all means which makes them salary increments or they lose their jobs and the Chinese are the investors of this companies and you have different loans in just one building. Imagine being called by many strangers that they have good loan offers and I asked how they got my contact and they say it’s from their fellow company and heard you are a good customer. This just so wrong, this apps are using the vulnerability of Nigerians against them. They employ unemployed Youths to trouble and defame helpless Nigerians with their useless money.
Some people are saying why should you borrow loan because you are very fortunate to be a little ok. I don’t pray u should be in a situation that will make you borrow.
A day before due from moneytree and some somemoney is enough for weak people to commit suicide.
In every situation be thankful to God for yourself and done saying rubbish
I took a loan from lendsafe and was over due cause my phone got spoilt trying to pay the loan after fixing the phone, downloaded the app and they are saying the account doesn’t exist , after two day I got a text saying I should pay to a particular acc for the loan. Now I’m receiving frequent calls and text but they keep ignoring the question I asked why the account doesn’t exist anymore. It has turned to harassment and defamation.
These loan apps are particularly the cause of their problems, cause tell why you will give a loan of 100k and expect the person to pay within a week . If the person was financially okay will they borrow from your app. And when it gets over due , instead of you guys to help your customers think of a solution that will benefit both you and your customers you result to pressure, harassment, defamation, and other vices forgetting that once you choose this part there is a 100% chance the customer won’t pay that loan again.
You can think of methods like part payments, since the person is in default you schedule it partly depending on the amount … if an individual is owing 150k and it gets due and you calmly tell the customer that he or she can pay partly for maybe 2/3months a specific amount, don’t you think the person will feel more relieved that you hacking people’s phones and calling and texting their contacts knowing your the only once at loss cause if the contacts you send it to ignores your text and calls, same with the debtor and move on with their daily lives who do you think will be at loss…
Most times before opening a digital loan business or enterprise think of the risks involved and how to manage them not to insult people… cause once you result to defamation and harassment, the person automatically is free from the loan cause your braking the rules and laws…
#A young finance student 🤭
I love my course….