CREDICORP WARNS LENDERS AGAINST HARASSMENT, SAYS DEFAULTING IS NOT A CRIME

The Nigerian Consumer Credit Corporation has warned lenders against using abusive, threatening or humiliating methods to recover outstanding loans, stressing that borrowers retain their rights even when they default on repayments.

CREDICORP issued the warning on Thursday, urging lenders to ensure that their debt recovery practices respect the dignity and privacy of borrowers. The corporation specifically cautioned against threats, verbal abuse, public shaming and contacting a debtor’s relatives or employer over unpaid loans.

According to the corporation, the fact that a borrower has fallen behind on repayment does not give a lender the right to harass or intimidate the individual. It emphasised that legitimate debt recovery must be carried out through lawful and appropriate channels.

CREDICORP also warned against exposing borrowers on WhatsApp or social media platforms as a means of forcing them to repay their loans. Such practices, it noted, could amount to unfair treatment and violations of consumers’ rights.

The corporation referenced Section 34 of the Nigerian Constitution, which protects the dignity of the human person. It also pointed to the lending framework of the Federal Competition and Consumer Protection Commission, which prohibits intimidation and privacy violations during credit recovery.

CREDICORP advised borrowers who believe they have been subjected to improper recovery methods to document the alleged misconduct and report such cases to the FCCPC or the Central Bank of Nigeria.

The warning comes as concerns continue over the methods used by some lenders and digital credit providers to recover loans from customers. Regulators and consumer protection authorities have increasingly stressed the need for lenders to balance their right to recover legitimate debts with borrowers’ fundamental rights.

CREDICORP also reminded Nigerians that taking a loan requires careful consideration beyond the interest rate. Borrowers were encouraged to examine the total cost of credit, repayment conditions and the purpose for which the money would be used before accepting a loan.

The corporation said its latest guidance was issued for informational purposes and should not be interpreted as legal advice or official policy guidance.