Lady Discovers Loan Balance Has Quadrupled
A young Nigerian woman who borrowed N35,000 from a loan app four months ago has expressed shock and frustration after discovering that her outstanding balance had ballooned to N140,000. In a TikTok video posted by @sophyhair2, she called for the shutdown of loan apps, citing exorbitant interest rates and additional charges.
According to the lady, she took the loan for personal reasons and decided to check her balance after several months. To her dismay, the amount had increased more than fourfold, despite not having made any repayments. She said in the video: "They need to pack up loan apps. I took a loan of N35,000 and within the space of 4 months, the money has become N140,000."
Public Reaction and Similar Cases
The video quickly gained traction, with many Nigerians sharing their own experiences with loan apps. This incident is not isolated; a similar case involved a man who borrowed N20,000 and saw it rise to over N86,000 after 247 days. He refused to repay, arguing that the interest was too high.
In another instance, a man who borrowed N159,000 for an emergency was expected to repay over N220,000 just 34 days later. He sought advice from other borrowers on how to handle the situation.
Legal Perspective on Loan App Debts
Amid growing concerns, a Nigerian lawyer clarified that debt is a civil matter, not a crime. Citing the Police Act 2020 and the Nigerian Constitution, he stated that police cannot arrest individuals solely for owing loan apps. He advised borrowers who face unlawful arrest or intimidation to take legal action.
Additionally, a Nigerian man named Leonard IB Marcus refused to repay a loan app, claiming its terms violated Central Bank of Nigeria (CBN) guidelines. He said the app charged 2% interest daily instead of the CBN's 1% monthly limit.
Impact on Borrowers
These cases highlight the predatory practices of some loan apps in Nigeria, where borrowers often face aggressive debt collection and interest rates that can quickly spiral out of control. Many are calling for stricter regulation to protect consumers from such financial traps.
