Defaulting on loans from digital lenders seems to attract an unusual amount of nuisance, insults, and coercion from their recovery agents in Nigeria. In this detailed guide, we explore practical steps to protect oneself from such unethical harassment practices.
Why Do Loan Apps Harass Debtors?
While loan recovery is valid, the methods employed leave much to be desired. Some probable reasons for their behavior include:
- Lack of Regulation: Most operate without proper licenses and know these antics aid faster debt collection.
- Data Harvesting: Phone/contact access lets them directly contact friends/family adding pressure on defaulters.
- No Consequence: Being online-only with no physical address, rules seem not to apply limiting excessive recovery force.
- Collection Incentives: Agents may be internally motivated to employ harsher tactics to attain recovery targets and bonuses.
- Foreign Ownership: Overseas owners stay detached from how recovery actually impacts local borrowers psychologically.
Regardless, no reason justifies the use of insults, threats, privacy breaches,es or making someone’s life difficult for genuine inability to repay on time.
Paying Up: An Avoidable First Step?
While loan repayment shows responsibility, sinking further into debt just to stop harassment may not always be the prudent choice. Some alternatives could be:
- Verify Lender’s License: Unregistered entities thrive on threats so complaint filing paralyzes illegal operations.
- Dispute Amount: Check for duplicate or fraudulent deductions, demand supporting documents, and negotiate the amount.
- Request Time: Explain inability to pay presently but commit to paying over an extended period. Licensed lenders may agree.
- Consider Sheriff: Debt resolution experts/lawyers can professionally represent you without directly engaging such lenders.
- Use Regulation: Lodge complaints describing misconduct with appropriate authorities like CBN, FISSPAN, police, courts, etc.
So assess options wisely before rushing into further payments that may not always solve the core issue sustainably.
Ignoring Threats and Blocking Harassment
Once harassment starts, acting calmly yet firmly becomes important. Some effective steps include:
- Remain silent: Do not react, argue, or threaten back which could invite more troubles legally. Keep records discreetly.
- Block Contacts: Bar-specific recovery phone numbers so they cannot directly contact you anymore on those channels.
- Protect Friends: Politely request loved ones to not engage unnecessarily with any party claiming you owe the debt.
- Stay Calm: Harassment aims at frustrating you into submission. Do not give up that control through knee-jerk reactions.
- Consider Legal Advice: Consultation on further protective steps like a warning notice or police complaint.
- Be Available: Communicate willingness to settle amicably later through proper mediation once direct harassment ceases.
The key is prioritizing sanity, disengaging from verbal conflicts, and pinning hopes on the rule of law instead of succumbing to illegal demands.
Involving Police and Other Authorities
Harassment crosses limits that warrant lawful intervention. Some scenarios include:
- Receiving threats of harm, blackmail, or being doxxed via social platforms and contacts.
- Insults and vulgar name-calling continue despite clarifying your stand to maintain civility.
- Demands become irrational or recovery agents refuse to identify themselves properly.
- Breach of data privacy and unauthorized access to personal information.
Formal complaints to relevant bodies stating specific violations along with proof can help:
- Police – File Nona or Yellow Card report against individuals for possible criminal intimidation charges.
- CBN – Lodge grievance against unlicensed lenders indulging in prohibited practices.
- FISSPAN – Report member NBFCs contravening the code of conduct on collection.
- Court – Seek protection orders against further nuisance calls, and messages from recovery agents.
While this may frustrate agents in the short run, it strengthens one’s defense and builds a formal record of responsible attempts to resolve matters peacefully.
Negotiating Repayment through Authorized Mediums
Once direct harassment stops, exploring sincere resolution through legitimate platforms makes sense if genuinely unable to pay currently:
- Contact registered parent companies via email/website rather than individual agents.
- Request a meeting with support/complaint executives to explain difficulties.
- Propose realistically extending tenure and reducing installments considering circumstances.
- Obtain everything related to revised repayment terms in a documented email for proof.
- Fact check company’s license, and reputation through open sources before trusting verbal commitments.
- Stay away from unregistered or known errant operators even during negotiations.
The aim here is solely to make an amicable settlement without attracting further costs via lawful mediation forums acceptable to regulators.
Blacklisting Fraudulent Lenders
As a last resort to prevent others from falling prey as well, aggregators like Nairaxx and Credgenius allow reporting:
- Non-licensed operations and entities using prohibited means for loan recovery.
- Consistent failure to respect consumer privacy or incorrect displays of charges/rates.
- Submission of fake documents during complaints or avoidance of addressing issues sincerely.
- Identity theft, unauthorized loan sanctions without consent or previous request.
Aggregators in turn warn others and initiate chargebacks if such allegations prove valid. This responsible digital-age consumer activism curbs illegal practices gradually industry-wide.
Conclusion
While taking loans cautiously and repaying punctually is the ideal solution, seeking protection from unregulated high-handedness through legitimate complaints and advising others highlights are also important to reform the ecosystem systematically over time. Upholding rights assertively yet calmly through established processes delivers the best outcomes.