In this article, I will explain the ways to prevent loan apps from accessing your bank account, especially if you’re not fully prepared to repay the loan.
Almost all loan apps tend to debit a debtor’s account once it is time for loan repayment.
If you are not ready or prepared to repay the loan, it can be quite painful to see your bank account debited, especially if you need the money in your account.
I will go ahead and explain the ways to prevent this from happening.
How to stop loan app from accessing my bank account?
To stop a loan app from accessing your bank account, simply block your debit card, remove the card from your bank account and request for a new card.
Most registered loan apps in Nigeria debit a bank account via the debit card.
Once the debit card is still very much active and there’s money in the bank account, the loan company will debit your account.
One way to prevent such from happening is to block your debit card, remove the charge from your bank account, and then request a new debit card.
The debit card I’m talking about is the ATM card as we popularly call it in Nigeria.
Once the old debit card is no longer active and not linked to your account, the loan app won’t be able to debit your account.
Please, I will advise you to repay your loan because it is unethical not to repay a loan after you have reached an agreement and accepted the terms and conditions.
If you’re asking how to stop loan app from accessing my bank account, it is by blocking your debit card, remove the card from your account, and request a new one.
Aside from blocking your debit card, there are other ways to stop loan app from accessing a bank account in Nigeria.
They are as follows;
2. Revoke permissions
On Android:
Go to your device’s Settings > Apps > find the loan app > Permissions > Revoke permissions related to SMS, contacts, storage, and phone access.
This can limit the app’s access to your personal data.
On iOS:
Go to Settings > Privacy > find the loan app under the relevant permission category (like Contacts, Photos, etc.) and turn off access.
Here’s the problem;
Some of these loan apps especially the loan sharks will still have access to your phone after revoking access to Permissions.
Once they have access to your phone and account details, they store it in their database.
For these loan sharks, this method may not necessarily work.
3. Freeze your account
Yes, this is another way to prevent loan apps from debiting your bank account, freezing your account.
Once your bank account is frozen, debit transactions will be restricted, but you can receive payments, transfer money, or deposit money into the bank account.
Only debit transactions will be restricted.
However, this will affect you if you only have a single bank account.
This method will be good for those with multiple bank accounts.
Once you are ready for loan repayment, you request the bank to unfreeze your bank account.
4. Disable UPI
If the loan app uses UPI or an autopay mandate for deductions, disable it through your banking app or UPI app.
Go to your UPI app (e.g., Google Pay, PhonePe) > Profile > Autopay mandates > Find the loan app’s mandate and cancel it.
5. Change your Bank account credentials
Consider changing your online banking password and PIN if you suspect the app has access to them.
However, most loan apps don’t have to someone’s online banking account except you gave them full access to your account details which is improper.
But the truth is that I don’t trust most of these loan apps because once you install their apps on your phone, they will have full access to your phone and apps, including your bank mobile apps.
So updating your credentials can prevent the app from initiating unauthorized transactions.
6. Uninstall the Loan App
Once you have unlinked your bank account and revoked all permissions, you can uninstall the loan app from your device to ensure it no longer has access to your data.
I recommend that you first repay the loan you borrowed from them and then uninstall the loan app.
These are the ways you can prevent loan apps from accessing your account, especially by blocking your debit card and requesting a new one.
Don’t Miss:
Should you repay a loan?
Whether you should repay a loan depends on several factors, including your financial situation, the terms of the loan, and the potential consequences of not repaying.
Here are some key points to consider:
1. Legal Obligation
Yes: When you take out a loan, you enter into a legal agreement to repay the borrowed amount along with any interest and fees.
Failing to repay the loan can lead to legal action, damage your credit score, and increase your financial burden due to late fees and additional interest.
2. Financial Consequences
Yes: Not repaying a loan can lead to severe financial consequences, including:
- Damage to Credit Score: Missed payments can negatively impact your credit score, making it harder to get loans, credit cards even here in Nigeria, as long as your BVN has been flagged.
- Interest and Penalties: Unpaid loans accrue interest and may come with penalties, making the debt even larger and harder to manage.
- Debt Collection: If you default on the loan, the lender may sell your debt to a collection agency, leading to more aggressive efforts to recover the money.
3. Ethical Considerations
Yes: Repaying a loan is an ethical obligation.
Borrowing money implies a promise to repay it, and failing to do so can affect your reputation and relationships, especially if the loan was taken from a friend or family member.
All in all, Yes, Repay.
In general, you should repay a loan.
However, if you’re facing financial difficulties, it’s important to communicate with the lender and explore any available options to avoid defaulting.
If the loan terms are unfair or predatory, seeking advice from a financial advisor or legal professional can help you navigate your options.
And this is where I come to the conclusion of today’s topic, how to stop loan app from accessing my bank account. I’m open to your comments and suggestions.