What happens if online loan is not paid in Nigeria?

Asked by: Steve Emard  |  Last update: September 4, 2022
Score: 5/5 (10 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.

Can an online loan app block my 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.

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 if you don't pay online loan?

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.

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.

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20 related questions found

What happens if you dont pay Fairmoney?

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.

Can I go to jail for not paying online loans?

2. Can you be arrested and sent to jail if you fail to pay your debt? Many borrowers default on a loan every day, and the common question they ask is whether nonpayment of the loan will result in imprisonment. The answer is no.

Can I go to jail for not paying online loans 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.

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.

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.

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.

Can you go to jail for not paying a loan in Nigeria?

Yes, you can be arrested for not paying the loan once the payment is overdue or breach of contract for the loan.

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.

What happens if you don't pay loan apps?

The result is that you will owe more money because penalties, fees and interest charges will build up. Your credit scores will fall. It may take several years to recover, but you can rebuild your credit and borrow again — sometimes within just a few years.

Can credit bureau block my BVN?

As important as this number is, some citizens can run into trouble with theirs, either as a result of some of their actions or through no fault of theirs – their BVN can be blacklisted.

How can I block my FairMoney account?

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.

Can I delete my BVN?

No, I do not think that you can change your BVN (Bank Verification Number). This is because it is designed to be your identity, something like your social security number.

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 can I get rid of online loans?

How to Get Out of Payday Loan Debt for Good
  1. Getting out of payday debt is tough, but possible. ...
  2. Try a Payday Loan Consolidation/Debt Settlement Program. ...
  3. Prioritize High-Interest Loans First. ...
  4. Ask for Extended Payment Plans. ...
  5. See If You Can Qualify for a Personal Loan. ...
  6. Get a Payday Alternative Loan (PAL) from a Credit Union.

What happens if you ignore a debt collector?

Ignoring or avoiding the debt collector may cause the debt collector to use other methods to try to collect the debt, including a lawsuit against you. If you are unable to come to an agreement with a debt collector, you may want to contact an attorney who can provide you with legal advice about your situation.

Are Online loans legal?

“Considering that the online lending operators are not incorporated entities or have no Certificate of Authority to Operate as Lending Companies or Financing Companies, the lending activities and transaction are illegal and have to be stopped immediately by this Commission,” the cease and desist order read.

What are your rights if you can't repay a loan?

A loan is classified as a non-performing asset (NPA) if the repayment is 90 days overdue. In such cases, the lender has to first issue a 60-day notice to the defaulter. If the borrower fails to repay within the notice period, the bank can go ahead with sale of assets.

Who is the owner of FairMoney?

Laurin Hainy is the CEO & Founder at FairMoney .