Fact and research has exposed the existence of various predatory and bogus loan apps in Nigeria, the main goal of which is to defraud poor and helpless consumers who are unlucky enough to request loan advances from them.
According to research, these phony loan applications either demand illegal security deposits from potential consumers or require them to pay processing fees for loans. Others like threatening and blackmailing clients at every chance, as well as rude and disrespectful comments directed at them.
Some of these fake loan apps have turned their platforms into loan sharks, terrorizing Nigerians with extremely high interest rates, sometimes as high as 50% for a 7-day tenure, and then harassing the consumers and their contacts with malicious and defamatory words even though the loan is still a day away from expiration.
This is immoral. In this article, you are going to find out the list of fake loan apps in Nigeria.
Here are lists of fake loan apps in Nigeria:
1) BorrowNow Loan App
BorrowNow is one of the bogus loan applications in Nigeria. All Nigerian loan applicants should reject the BorrowNow loan app because of its extremely high interest rates, failure to comply with Nigerian local regulations, and violation of Google loan term standards.
BorrowNow loan app is another terrible loan lender that sends threatening and libelous messages to their consumers and borrowers. Nigerians should avoid it at all costs.
2) NairaPlus Loan App
NairaPlus is one of the major Nigeria’s lists of phony loan apps. The scam lending platform is one of the Google Play Store fast loan applications that are compromising their customers’ data privacy and sending blackmailing and threatening messages to their connections whenever there is a claimed loan repayment default.
NairaPlus is the first app to be added to the list of banned lending applications in Nigeria. All Nigerian customers should shun the services of the NairaPlus lending app since it has regularly violated local laws and Google standards. (Full article)
3) Sokoloan Loan App
Another bogus lending portal in Nigeria is Sokoloan. The faults of the fraudulent loan app are listed below.
- Provide loans for 7 days as opposed to the 91 to 360 days advertised in the Google Play store.
- 7 days loan, like others, begins counting the minute money is received in your account, and what you see on your dashboard instantly is 6 days remaining. It is never seven days.
- If you do not pay when you are supposed to, their personnel will harass you, threaten you, and send messages to individuals on your contact list.
4) 9Credit Loan App
9Credit is the seventh entry on the list of bogus loan applications in Nigeria. They have warned all Nigerian loan applicants to avoid using the services of the 9Credit loan app due to unethical and unethical tactics.
For charging clients questionable high interest rates. For granting loans for only 7 days instead of the minimum of 60 days required by law. And for constantly defaming and threatening its clients and their contact information.
5) GoToCash Loan App
On November 28th, 2021, Google removed GotoCash and PalmCash, two rogue and false lending applications in Nigeria, from its Play Store due to repeated breaches of its policy on consumer data protection.
BorrowNow and LendCash, two additional fraudulent lending applications previously covered, were deleted around the same time for the same reason: breaching customers’ data privacy and sending libelous and threatening messages to their customers, their families, and contact list.
They strongly warn Nigerians to shun these bogus loan applications like the plague. Even their interest rates are exorbitant, and they levy unlawful service costs.
6) Fast Money Loan App
Fast Money is another phony lending app. unfortunately; it is still available on the Google Play Store.
The Nigerian government has finalized plans to enforce regulatory laws and prosecute fake loan apps and lending platforms such as Fast Money, NowCash, Sokoloan, 9credit, LendCash, and others that violate their customers’ data privacy by sending threatening and blackmailing messages to them and their contact lists.
Nigerians and loan consumers should avoid these applications at any costs.
7) 9ja Cash Loan App
The dangerous and outlawed Sokoloan lending app owns and manages the 9ja cash loan app, which is another bogus loan app.
Sokoloan Lending Company owns and operates 9ja Cash. Their tactic is to scare you with slanderous communications, which include persons on your contact list. This is unethical and unacceptably dangerous.
They demand excessive interest rates, deduct security fees from your account, and illegally limit your loan term to 7 days rather than the required minimum of 60 days.
Conclusion
In order to combat the alarming rates of data privacy violation by money lending operators, the National Information Technology Development Agency (NITDA) has formed a strategic relationship with the Federal Competition and Consumer Protection Commission (FCCPC).
Section 17(a) of the FCCPA, 2019 allows the Commission to oversee and enforce provisions of all Nigerian laws pertaining to competition and consumer protection.
As a result, NITDA has identified the FCCPC as a major player in its attempts to reign in the activities of some micro-lenders who have developed a predilection for abusing Nigerians’ personal data.
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