Loan Apps: Lawyer Explains 4 Consequences of Being Chronic Debtor, Urges People to Pay Their Debts
- A Nigerian lawyer has urged people to pay up their debts, warning that there are consequences of being a chronic debtor
- In a TikTok video that has gone viral, the legal practitioner explained four consequences of being a chronic debtor to loan apps
- She explained how owing loan apps could affect one's credit status, employment opportunities and bank verification number (BVN)
A barrister named Amarachi, known on TikTok as @datblacklawyer_, has sent an important message to Nigerians fond of borrowing money from different loan apps and refusing to pay their debts.
According to the Nigerian barrister, there are consequences for being a chronic debtor.
Source: Getty Images
Loan apps: Consequences of being chronic debtors
In a TikTok video, the lawyer noted that chronic debtors should not heave a sigh of relief when loan apps stop chasing them around for their money, as it does not mean they are tired and have forgotten about the money.
The lawyer said it implies that the loan apps have taken adequate legal measures to deal with the chronic debtor. The lawyer claimed that the loan apps at that point had taken the debtor's information to the credit bureau.
And when the credit bureau confirms that the person is a chronic debtor, it has its consequences.
"The No. 1 consequence is that you are going to be labelled a risky borrower, and what that means is that nobody is considering you for any loan again.
"Number two is that they are going to blacklist your BVN, your bank verification number. They are going to blacklist it with all the banks in Nigeria, with all the loan apps, financial institutions.
"Now, they are going to carry your credit um status. They carry it around. It is going to even restrict you from getting certain jobs because there are some there are some jobs, you know, there are some companies that take it very seriously, especially financial institutions. When the job description has to do with finance, they are going to probe into your debt status or your credit status and see if you are a chronic debtor and that is enough to deny you that job.
"Some of you you want to travel, it will come up unless you don't want to leave the four walls of Nigeria, it will come up, and lastly is that they still reserve the right to sue you..." she explained in the video.
Source: TikTok
Watch the lawyer's video below:
Loan apps: Lawyer's admonition sparks reactions
Legit.ng has compiled some reactions to the lawyer's admonition below:
Emmanuel K Agbajor said:
"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 said:
"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 said:
"They don't have right to or capacity to report you to credit brue is only the ones who meet CBN procedures and licensed and they re very few, not to justify debt but their interest does not follow CBN rules."
Onyinyechi said:
"Omo them don call me like hundred missed calls today."
IHUOMASINACHUKWU 🌹😘❤️ said:
"Pls ma how about someone that wants to repay the loan only to find out that you can't find the account number to make repayments and also the amount to pay back because that's the challenge I'm facing."
Tiza said:
"No loan company can blacklist your BVN, and owing loan app has nothing to do with you traveling out, the only consequences is you can't borrow more loan."
In a related story, Legit.ng reported that a lawyer had shared five things that many people do not know about most loan apps.
Lawyer shares how to fight loan apps
Meanwhile, Legit.ng previously reported that a lawyer had shared how people could fight back against loan apps.
According to the lawyer, a loan app messaging your mother because of N15k is not a loan reminder, but a crime.
She highlighted five things that the Nigerian law prohibits loan apps from doing to borrowers.
Source: Legit.ng
