Some Nigerians have been complaining about improper activities of “loan sharks” who offer them unsolicited loan facilities only to start harassing them when there is delay in repayment.

Findings reveal that these loan sharks are mostly fintech companies that offer loans at high rate returns, strict terms of collection upon failure, and generally operate outside the law.

Some of the fintech companies involved in loan offerings include Sokoloan, Gocash, Getcash, Fastmoney, Cashlion, TrueNaira, LCredit and Lcash.

They mostly charge high interest rate and service charge. They also give small amounts of money and short period of repayment, and most borrowers usually default in payment due to these conditions.

According to one borrower, Isaac Aliu, some of these lenders take extreme and unacceptable steps to recover their money.

“Imagine the situation where an agent is posting an imaginary obituary of a defaulter. That is an extreme action and should be met with heavy sanction.

“I still wonder why they take these drastic actions without the knowledge of authorities like CBN.

“Someone committed suicide recently because of this kind of embarrassment. It is better this loan apps get banned or subjected to strict regulation,” he said.

Matthew Oba narrated how one of the companies defamed him, even after repayment of his loan.

“I took a loan of N6000 from (one of the loan companies). They sent defamatory messages to all my contacts even after repayment have been made.

“They are so quick in taking drastic actions by posting one’s pictures to contacts which was not part of the agreement.

“They are worse than shylocks. They act polite when calling someone to take their loans only for them to become wild when it is time to pay back.

“Their mode of operation is fraudulent because most times the interest they charge is more than the one in their agreements,” he said.

Another borrower, speaking on condition of anonymity, bemoaned the death of his relative due to harassment by some of the loan sharks.

“My brother committed suicide in January due to harassment. Another defamatory notification dropped on his phone by CreditAll, I wonder how many more.

“They could have called the guarantor instead of all the contacts,” he said.

According to Ayoade Babatunde, a Chartered Accountant, some of the fintechs offering such loans are usually in breach of certain regulations.

“They breach the third-party protection policy, thereby taking laws into their hands without notifying the right authorities.

“They engage in defamation of character, which is likened to cyber bullying and have led to mental disability, emotional trauma and even death in some cases.

“They impose excessive interest rates, which have increased poverty levels of many of their victims, ” he said.

Read more: https://www.herald.ng/nigerians-decry-threat-intimidation-cyberbullying-by-loan-sharks/

Sorry of thats 9ja for U

It is understandable that one can obtain a loan and not be able to pay back due to some unforseen situations. So, i do not support how the loan apps operate... But most people take these loans without having a plan on how to repay.
Most borrowers can run down the company if strict measures are not taken.

If u dont have a repayment plan.dont borrow.

donbachi:
If u dont have a repayment plan.dont borrow.

what happened to defamation of your character, ow many times have banks call out names of Dangote or otedola names for not servicing their debt.

Somebody needs to take this people to court for breach of contract.

I borrowed from them, if you see the kind message they are sending, but sha as a naije guy before you spoil my name I go first spoil am for you, after all na money I borrowed No murder I commit,and ones you send defamation massage to any of my contacts that's the end of repayment oo..if my contacts will pay them let them collect the Money from them