Looking at the question we have here, can loan apps sue you in Nigeria?
Hmmm, this is one of the common questions asked when someone defaults on a loan repayment.
But come to think of it, can these loan apps sue a defaulter in Nigeria? Well, that’s our topic of the day, and I will explain everything you need to know when it comes to defaulting on loan repayments.
Can loan apps sue you in Nigeria?
No, loan apps cannot sue you in Nigeria, especially the loan sharks, which are mostly not registered with the Central Bank.
Now listen, there’s a difference between loan companies and loan apps.
Most of these loan apps are not even registered with the CBN, and even the registered ones don’t even have a physical office or address.
Taking out a loan through loan apps requires you to download and install their apps, fill out a form via the mobile app, and voila, you will receive the money in your account.
It’s so easy to collect a loan from a loan app compared to banks and other loan companies which requires a refree, filling an indemnity form and a collateral.
Because of the nature of the way these loan apps operate, it makes it impossible to sue a loan defaulter.
Yes, you heard me.
I’ve never seen an instance where any of these loan apps have sued a loan defaulter. Never once, instead they harass and destroy your reputation.
Asking can loan apps sue you in Nigeria? The answer is no. They don’t sue loan defaulters; instead, they harass and destroy your reputation among your friends and family.
What about the registered loan apps?
Honestly, I have yet to see both a registered and unregistered loan app sue anyone in Nigeria for defaulting on a loan repayment.
These loan apps do not ask for a referee or collateral when issuing a loan, making it easy for people to obtain loans from them compared to banks and other loan companies that require a referee, filling out an indemnity form, and collateral.
When someone defaults on the loan repayment, they resort to harassment and damaging of the person’s reputation among friends, family and colleagues.
I haven’t seen these loan apps take some to court.
However, loan sharks can never take you to court because they are not registered with the central bank.
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When they sent you a court order
Here’s the thing: these loan apps might go so far as to send you a court order, especially via email and WhatsApp.
Seriously, it’s laughable when they do that.
If you receive a court order from these loan apps via email or WhatsApp, simply ignore it because it is not a real court order but rather a fake tactic to scare you.
Yes, I’m telling you the truth.
The thing is that the way they handle the loan repayment issue makes it impossible to sue someone, and again, they are not registered with the Central Bank of Nigeria.
You shouldn’t worry at all if these loan apps send a court order to your WhatsApp account or email address.
They are simply trying to scare you into repaying your loan.
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You should repay your loan
As long as you borrow money from these loan apps, please repay the loan, even if they harass, embarrass, and destroy your reputation.
Please repay the loan you borrowed from them.
If the loan app is registered with the Central Bank of Nigeria, they may report your bank verification number.
And this simply means you cannot borrow money from banks and loan companies anymore.
I don’t see the reason why you should borrow money when you know that you can’t pay back the money.
Seriously, it doesn’t make sense to me at all.
You don’t have any excuses for failing to repay a loan, so please repay the loan and avoid issues with these loan apps.
You know you cannot try it with banks or other loan companies because of the indemnity form you filled out and the loan collateral.
I always advise people to repay their loans, even if they borrowed money from loan sharks.
How to save to repay a loan
Saving to repay a loan requires strategic planning and disciplined financial habits. Below are key steps and strategies you can use to save effectively and stay on track with your loan repayment:
1. Create a Budget
How: List your income sources and monthly expenses.
Why: A budget gives you a clear picture of how much you can save each month without compromising essential needs. It helps identify unnecessary spending.
2. Set a Loan Repayment Goal
How: Determine how much you need to repay and by when. Divide the total amount into manageable monthly savings targets.
Why: Setting specific savings goals keeps you motivated and on track.
3. Cut Unnecessary Expenses
How: Review your budget to eliminate non-essential expenses (e.g., dining out, subscriptions).
Why: Reducing costs frees up more money for savings and loan repayment.
4. Automate Savings
How: Set up automatic transfers from your main account to a savings account designated for loan repayment.
Why: Automation ensures consistency and removes the temptation to spend.
5. Open a Dedicated Savings Account
How: Use a separate savings account exclusively for loan repayment funds.
Why: It minimizes the risk of using the savings for other purposes and earns interest.
6. Avoid Taking New Loans or Credit
How: Use your budget and savings to cover needs instead of borrowing again.
Why: Staying debt-free allows you to focus on the current loan without adding new obligations.
With all said and explained, I come to the conclusion of today’s question which is can loan apps sue you in Nigeria.