A Nigerian lawyer, Amarachi, known on TikTok as @datblacklawyer_, has warned chronic debtors about the severe consequences of failing to repay loans from digital lending platforms. In a viral TikTok video, she explained that when loan apps stop aggressively pursuing debtors, it does not mean they have given up; rather, they have escalated the matter to legal and financial channels.
Four Consequences of Being a Chronic Debtor
The lawyer outlined four specific repercussions. First, the debtor is labeled a 'risky borrower' by the credit bureau, effectively barring them from obtaining any future loans from any institution. Second, the debtor's Bank Verification Number (BVN) is blacklisted across all banks, loan apps, and financial institutions in Nigeria. Third, this credit status can hinder employment opportunities, especially in financial sector roles where employers scrutinize credit history. Fourth, loan apps reserve the right to sue the debtor in court.
Impact on Travel and Employment
Amarachi emphasized that the consequences extend beyond borrowing. She noted that a poor credit status can surface during travel applications or background checks for jobs, particularly those involving finance. 'Some of you want to travel, it will come up unless you don't want to leave the four walls of Nigeria,' she said in the video.
Public Reactions and Concerns
The lawyer's video sparked mixed reactions on social media. User Emmanuel K Agbajor questioned the legality of loan apps' harassment tactics: 'So what does the law says about defamation of character? Does the law give them the right to insult and embarrass their clients?' UK Collins blamed high interest rates for repayment difficulties: 'Madam, the only problem with the loan app is that their interest rates are too high and that is what makes difficult for people to pay.' Mazi Igbo argued that only CBN-licensed loan apps can report to credit bureaus, while Onyinyechi complained about receiving hundreds of missed calls from loan apps.
Legal Recourse for Borrowers
In a related story, Legit.ng reported that another lawyer shared five things many do not know about loan apps, including how to fight back against illegal practices. The lawyer noted that loan apps messaging a borrower's mother over a N15,000 debt constitutes a crime, not a reminder, and highlighted five legal prohibitions against loan apps under Nigerian law.
