I was introduced to palm credit (a micro scale lending company) and I took a loan of three thousand naira which I paid back.
Shortly after, I was in need of quick cash, so I patronized them again. However, due to serious cash crunch which I have experienced lately due to decline in my business activities, I defaulted in the repayment of the loan for thirty days.

Before taking this loan, I read their terms and conditions carefully, and I understood that the punitive measure for late repayment was accrual of interest on the principal loan and also reporting to the National Credit Bureau. In terms of confidentiality of agreement, this is what is written on their site;
"When using Palm credit, your data is always secure. Our platform uses world-class standard security and encryption technology to protect all details. When you provide us with information, you can also be assured of your privacy - our loan agreements are always kept confidential. Palm credit never shares your information with third parties unless it is for dedicated business purposes, such as reporting defaulted loans to authorized credit bureaus. We do not sell your data or credit profile."

However, to my uttermost consternation, Palm credit started messaging my phone contacts (randomly) the following "Please inform (my full name) to settle loan repayment of eight thousand, seven hundred and thirty six naira as soon as possible else, actions will be taken against him. If in doubt, please call (my name) on (my mobile number)".

Three things were wrong here;

Palm credit broke our confidentiality agreement.

In a desperate move to embarass me, Palm credit inflated my loan repayment by over a hundred percent. When I checked to see the amount due for repayment, it was actually four thousand three hundred naira and not eight thousand seven hundred naira as claimed by Palm credit.

While using the Palm credit app on my device, Palm credit swept through my phone and copied my phonebook contacts with the callous aim of messaging them to embarass me.

I tried calling their customer care and they refused to pick. I also tried to speak with one of their agents on phone but she also declined to speak but instead ended the call on me severally after realising their foolishness.

I had intended to make the repayment next week as soon as my clients pay me for the previous work I have done for them but I have now decided that I will NOT repay that loan until Palm credit retracts their messages by apologizing to the random contacts they messaged from my phonebook.

I have contacted a lawyer and I will be suing the company for breach of confidentiality as contacting third parties apart from the credit bureau was not part of the terms and conditions made available on their site and app. This incident is a clear indication that these online lending companies (especially palm credit) cannot be trusted with your information (phone contacts, BVN, and account details). They are rogues!

4efv