A Nigerian legal practitioner, Barrister Confidence Aribibia, has stated that many digital loan apps that resort to threats and intimidation rely heavily on the ignorance and fear of borrowers who are unfamiliar with their legal rights.
In a Facebook post shared on April 13, Barrister Confidence pointed out that several of the loan apps causing panic among Nigerians are not licensed by the Central Bank of Nigeria (CBN), meaning they are operating without proper regulatory approval.
“…Some of those apps you’re panicking over are not even licensed by the Central Bank of Nigeria. They are operating in the dark.”
“No proper office. “No real structure. “Just pressure, threats and fear. “Once you delay payment, they start calling everybody in your contact, sending shame messages, threatening you like they own your life and you’re there shaking…” the barrister wrote.
Lawyer’s message to Nigerians about loan apps
Continuing her post, Barrister Confidence argued that loan apps operating without the necessary licences are not in a position to institute legal action against borrowers who fail to repay their loans.
She further explained that such unlicensed lenders also lack the legal authority to impose interest on loans.
“…Listen carefully. “Those apps you’re afraid of, they cannot take you to court. Because to go to court, you must come with clean hands. He that seeks equity must come with clean hands. How do you enforce the law when you are operating outside it? “And here is the part nobody tells you. An unlicensed loan app has no legal right to charge interest. Yes. No licence no legal backing for those outrageous interest figures they keep adding…”
The lawyer maintained that many of these lending platforms are neither properly registered to conduct lending business nor authorised to recover the excessive interest they often demand.
She also claimed they cannot legally blacklist a borrower’s BVN or officially report defaulters to recognised credit reporting systems.
She encouraged Nigerians not to allow themselves to be bullied by loan apps that are not operating within the bounds of the law.
“…They survive on one thing: Fear. “The moment you understand that, half of their power disappears. I’m not telling you to run away from your responsibility. “But I’m telling you this for free. Stop being intimidated by people who are not even operating legally…”
See the post belowÂ
How netizens reacted to her post:
Obinna Ugboaja Africantallestman said: “If you borrow money from anyone whether the person is licensed to lend money or not, endeavor to pay back as agreed.”
Lukumon Onimama said: “Yes ooo.. l borrow 95000 thousands naira.they Said l will pay 150 + thousands naira which l agree. And l have pay back about 80 or more than… because things get as be this days… they are now adding daily interest like say tomorrow no dey..when them called me.l told them to stop put daily interest that is making fear to even pay the money…now instead of 70 thousands naira balance the money now don go back to something 150 thousands naira again..they want to kill person ni oooo wallahi.”
Francis Emmanuel More-Blessing said: “While you tell people not to be intimidated by these loan app, our people too shouldn’t not take advantage of them , as far wen people borrowed the money,at least the money rescued them at that moment of pain 🤷.
“That’s humanity. “At least if the interest is too much to pay, let’s pay the exact money we borrowed.”
Mimi Elle Olubunmi said: “U can also advise they avoid taking a loan they can’t pay back. But loan can be person to person as long as it can be proved with correspondence tenable.”
