Can I go to jail for not paying online loans in Nigeria?

Asked by: Selmer Champlin  |  Last update: September 10, 2022
Score: 4.8/5 (27 votes)

Failure to pay back a loan could result in court charges in Nigeria, but not much is known about this: and for good reasons. Loan defaulting is a civil matter and not a criminal offence, so you typically won't go to jail for defaulting on a loan.

What will happen if I don't pay my Fairmoney loan?

Depending on your profile, the processing fee ranges from 3% to 15% (GST applies) We also charge a minimal late penalty fee (calculated as a % of the outstanding amount after the due date). This fee is only charged if you don't repay your loan on time and ranges from 0.2% to 0.8% per day.

What happens when you default on an online loan in Nigeria?

If the lender does not have a collections department, they can employ a third-party collections agency service. Also, if the creditor gets a judgment against you, it can result in your tax refund or wages being garnished. For some types of loans, defaulting can result in you becoming ineligible for any other loans.

What happens when you dont pay online loans?

Non-payment of loans simply equals to lower credit scores, which will eventually disqualify you from making any secured loans in the future. If your loans reach a default, expect to get really bad credit scores that will also disqualify you of any financial assistance when you most need it.

Can loan apps block your BVN?

A loan app cannot 'BLOCK' your BVN, they can only prevent you from getting further loans from their platform or getting loans from other loan app.

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45 related questions found

How do I stop loan apps accessing my contacts in Nigeria?

Please kindly go to settings in your android phone, click on app & notifications. Scroll down to app permission and deny them access to your contacts, sms, photo gallery and storages on your phone, they won't be able to reach out to your contacts anymore or post your pictures.

How do I stop loan apps from calling my contact?

To stop loan apps from accessing your phone contacts or calling your contacts and family members, do the following: Don't download any loan app on your phone. If you have already downloaded a loan app, don't approve or collect any loan from the platform.

Does Fairmoney send messages to your contacts?

You can enable or disable access to this information at any time, through Your Device settings. **We will NEVER communicate with any person from your contact list.

Can easy buy block my BVN?

Even the almighty CBN will have to get a subpoena to have your BVN blocked ,so relax and take it easy . Loan companies are not authorised to block BVNs. However, if you are involved in the loan, call the person or pay back or ignore the threats if you are not affiliated with it.

What happens if I don't pay my loan and leave the country?

When you are away, your creditors can claim any and all assets and estates you hold back in the actual country of residence. They can take just as much as the money you owe them, and lawfully so. One other thing that happens is the continuously adding late fees and other additional charges.

What happens if online loan is not paid in Nigeria?

Failure to pay back a loan could result in court charges in Nigeria, but not much is known about this: and for good reasons. Loan defaulting is a civil matter and not a criminal offence, so you typically won't go to jail for defaulting on a loan.

What happens if you don't pay back a loan in Nigeria?

Aside from confiscating your collateral, your name will be blacklisted and sent to regulatory bodies like CBN and the Credit Bureau. You will no longer be able to take other loans or take on most government responsibilities. Your credit score will also plunge.

Can FairMoney deduct money from my account?

FairMoney is an automated online moneylender that provides single payment loans, installment loans and payroll loans for borrowers. The amount borrowed is then deducted from your account.

How do I stop loan apps accessing my bank account?

Depending on your phone's model and android version, the procedure may defer slightly but in general, the steps are as below.
  1. Go to 'Settings'
  2. Click on 'Manage Apps'
  3. Select the app you want to view and click on 'App Permissions'
  4. In this menu, users can manually enable/disable the app permissions at will.

Is loan default a criminal offence in Nigeria?

The failure of a debtor to liquidate his debts is not a criminal offense under the law; it's a civil offence and as such, the services of the Police and other security agents will not be required. They do not have the power to prosecute a debtor.

Is Okash registered with CBN?

About us. Blue Ridge Microfinance Bank Limited is a CBN Approved company that economically empower micro- entrepreneurs and low income earners by providing Short term loans using our app OKASH .

Can CBN block my BVN?

Can BVN be blocked? The CBN can decide to blacklist or block an individual's BVN if the agency discovers illegal transactions or reports from credible sources of the account's involvement in fraudulent activities.

Can I be tracked with my BVN?

Hi Muhammad: No, you can't. They can only disclose information to the police or other law enforcement agents. You cannot trace someone with the bank account details in Nigeria.

How do I know if my BVN has been blacklisted?

Several factors can help you determine if your bvn has been blacklisted in Nigeria, such as your inability to transact or your bank contacting you. But the most effective way to know if your bvn is blacklisted in Nigeria is to use any of the registered Credit Bureau portals in Nigeria.

Can loan app come to my house?

Can loan apps come to my house? A loan app cannot come to your house. However if you already downloaded their app and collected their loan, they can access your contact list, databases, BVN, profile details and can report you to the credit bureau and blacklist your name against your BVN if you default on your loan.

How can I delete my account on FairMoney?

Such Users can notice their wish to delete the information from FairMoney account by sending an email to [email protected]. However the User who has availed or loan is approved from any of our lending partners, then the User account information cannot be deleted.

How do I stop payday loans from debiting my account?

Even if you have not revoked your authorization with the company, you can stop an automatic payment from being charged to your account by giving your bank a “stop payment order.” This instructs your bank to stop the company from taking payments from your account.

Can loan apps access my gallery?

It is advised to avoid taking loans from these applications as they charge 30% to 35% rate of interest per annum and also harass borrowers by way of taking access to their contacts/photos/gallery and sending messages to people known to them.

Can an app access my contacts if uninstalled?

No, when you delete an app from your phone, the app no longer has access to your personal information. The company that deployed the app will still have whatever information you gave them through the app before deleting it, however.