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🇳🇬 Nigeria /Crime & Justice

Nigeria's CREDICORP warns lenders against harassing debtors

From The Punch · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement Context piece
  • Nigeria's Consumer Credit Corporation (CREDICORP) has cautioned lenders against using abusive or humiliating tactics to recover unpaid loans.
  • The corporation stated that threats, public shaming, and contacting family or employers are prohibited debt collection practices.
  • CREDICORP stressed that defaulting on a loan is not a crime and that borrowers' rights, including dignity, must be upheld.

Nigeria's Consumer Credit Corporation (CREDICORP) has issued a stern warning to lenders, prohibiting aggressive and disrespectful tactics in debt recovery. The corporation emphasized that falling behind on loan payments does not strip individuals of their rights or dignity.

CREDICORP outlined unacceptable practices, including threats, abuse, contacting borrowers' family members or employers, and publicly shaming debtors on social media platforms like WhatsApp. "Falling behind on a loan does not give any lender the right to harass you," the statement declared. "Debt recovery must follow collection practices."

Falling behind on a loan does not give any lender the right to harass you. Debt recovery must follow collection practices. That means: no threats, no abuse, no calls to your family or employer, and no public shaming on WhatsApp or social media.

— CREDICORPCREDICORP's statement detailing prohibited debt recovery tactics.

The corporation reminded lenders that "being in debt is not a crime, but unfair treatment is." It referenced Section 34 of the Nigerian Constitution, which guarantees the right to human dignity, and noted that the FCCPC lending framework explicitly prohibits intimidation and privacy violations.

CREDICORP advised consumers who experience rights violations during debt recovery to document the misconduct and report it to the Federal Competition and Consumer Protection Commission or the Central Bank of Nigeria. This warning follows previous guidance from CREDICORP urging Nigerians to consider the full implications of loans beyond just interest rates.

Being in debt is not a crime, but unfair treatment is.

— CREDICORPCREDICORP's assertion on the rights of borrowers.
About this summary

Originally published by The Punch in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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