Lawyer Exposes Illegal Loan App Practices
Barrister Confidence Aribibia, a Nigerian lawyer, has outlined five critical facts about most loan apps that she believes many borrowers are unaware of. In a Facebook post on April 13, she cautioned Nigerians not to be intimidated by these apps, which often operate outside the law.
Loan Apps Operating Without CBN License
According to the lawyer, many loan apps that threaten borrowers are not licensed by the Central Bank of Nigeria (CBN). She stated: "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."
No Legal Right to Sue or Charge Interest
Barrister Confidence emphasized that unlicensed loan apps cannot take borrowers to court because they are operating illegally. She explained: "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?"
She added that an unlicensed loan app has no legal right to charge interest. "No licence, no legal backing for those outrageous interest figures they keep adding," she noted.
Key Points: Loan Apps Cannot Blacklist BVN
The lawyer listed several things most loan apps cannot do: they cannot legally enforce the high interest they charge, cannot blacklist your Bank Verification Number (BVN), and cannot properly report you to credit systems. She stressed that these apps survive solely on fear.
Mixed Reactions from Nigerians
The post generated varied responses. Francis Emmanuel More-Blessing commented: "While you tell people not to be intimidated by these loan apps, our people too shouldn't take advantage of them. At least if the interest is too much to pay, let's pay the exact money we borrowed."
Obinna Ugboaja Africantallestman advised: "If you borrow money from anyone whether the person is licensed to lend money or not, endeavor to pay back as agreed."
Lukumon Onimama shared his experience: "I borrowed 95,000 naira. They said I will pay 150+ thousand naira which I agree. Now they are adding daily interest. When they called me, I told them to stop adding daily interest. Now instead of 70,000 naira balance, the money has gone back to 150,000 naira again."
Lawyer's Final Advice
Barrister Confidence urged Nigerians to stop being intimidated by illegal loan apps. She said: "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."
In a related development, the Federal Competition and Consumer Protection Commission (FCCPC) recently denied approving 48 new loan apps, highlighting ongoing regulatory concerns in the sector.
