CREDICORP Warns Lenders Against Loan Harassment and Public Shaming

The Nigerian Consumer Credit Corporation has strictly prohibited the public shaming of borrowers by loan apps.. Source: BANKiBUSINESS

The Nigerian Consumer Credit Corporation has issued a strict public notice regarding the aggressive debt recovery tactics frequently employed by financial institutions and digital loan apps across the country. 

In a strongly worded statement released on Thursday, CREDICORP warns lenders against borrower harassment, making it completely clear that falling behind on loan repayments does not strip citizens of their fundamental human rights. 

The corporation explicitly listed prohibited practices, maintaining that debt recovery must be conducted lawfully and with absolute respect for consumers’ dignity.

According to the regulatory body, unethical collection practices such as issuing threats, hurling verbal abuse, illegally contacting a borrower's family members or employers, and broadcasting debtors' personal information on WhatsApp or social media platforms are strictly forbidden. 

The corporation emphasized that while owing money is a financial reality for many, being in debt is not a criminal offense, whereas unfair treatment and public humiliation certainly cross legal lines. 

As CREDICORP warns lenders against borrower harassment, they also referenced Section 34 of the Nigerian Constitution, which explicitly guarantees every citizen the right to the dignity of the human person. 

Additionally, the lending framework established by the Federal Competition and Consumer Protection Commission (FCCPC) expressly prohibits intimidation and privacy violations in the financial sector.

To empower citizens, the corporation advised any borrower who feels their rights have been violated during the debt recovery process to properly document the alleged misconduct, including saving threatening text messages or recording abusive phone calls. 

These documented violations should then be officially reported to the FCCPC or the Central Bank of Nigeria for immediate regulatory action. 

This latest intervention comes shortly after the agency urged Nigerians to look beyond mere interest rates when taking out loans. 

Before signing any financial agreement, consumers are advised to carefully evaluate the full cost of credit, the repayment terms, and the actual value the funds will create. 

While CREDICORP warns lenders against borrower harassment, the agency also reminded the public that this recent guidance serves an informational purpose to promote a healthier credit culture rather than acting as binding legal advice.