Nigerians have expressed growing concerns and distress over the escalating intimidation tactics by loan app managers, creating a worrisome trend just weeks ahead of the festive season.
Distressed citizens have taken to social media platforms, especially Facebook, to share their harrowing experiences, highlighting the aggressive methods used by these apps to chase unpaid loans.
Despite the existence of clear laws against such tactics, loan app operators continue to employ extreme measures against clients they deem to have defaulted in their loan repayments.
Sections 56 and 373 of the Criminal Law of Lagos State, 2015, outline the criminal code offense of threatening life and criminal defamation, respectively.
Violations of these laws can lead to imprisonment, according to the sections.
The Federal Competition and Consumer Protection Commission (FCCPC) has registered and approved 211 loan apps by the end of October 2024.
However, concerned citizens are decrying the excessive use of underhanded means by loan app managers and operators, violating ethical and legal standards.
In an online survey conducted by LightRay Media on Human Rights Report and Impact of Technology in partnership with Gavel; a civic tech organization working to address matters relating to law and justice, social media users on Facebook voiced their concerns about the aggressive tactics of loan app managers.
Some users even recounted troubling incidents, including threats to involve borrowers’ family members, cursing and character assassination attempts over unpaid debts.
Pelu Awofeso, a tourism journalist, making his comments on Facebook, questioned the rationale behind belligerent approaches, especially during the approaching festive season.
Another use, Nelson Egware expressed disbelief at borrowers who take loans without intentions to repay, highlighting the ethical dilemma at the heart of the issue.
Reports indicate that the number of loan apps under the watchlist increased from 55 in September to 84 as of October.
Some of the apps mentioned included Cashlawn, Easynaira, Crediting, Yoyi and Nut Loan App, among others.
Despite efforts by the FCCPC to delist 45 illegal loan apps from the Google Play Store, new apps continue to emerge, causing emotional distress and defamation to users.
Nigeria are now calling for stronger ethical conduct and regulatory oversight to protect borrowers from aggressive lending practices.
The Executive Director of LightRay Media, Ejiro Umukoro, emphasized the need for urgent action by the Nigerian National Assembly to address the underhanded practices of loan app operators.
She urged lawmakers to deliberate on this issue before the festive season to prevent further abuse and exploitation of Nigerians.
She said the investigation, supported by LightRay Media on Human Rights Report on Impact of Technology is intended and aims to promote the rule of law and the right to human dignity in compliance with UN SDG goals.
