The Nigerian Consumer Credit Corporation (CREDICORP) has warned lenders against harassing, threatening or humiliating borrowers over unpaid loans, stressing that debt recovery must be carried out lawfully and with respect for consumers’ dignity.
The corporation, in a statement on Thursday, said falling behind on loan repayments does not give lenders the right to subject borrowers to abusive or degrading treatment.
CREDICORP specifically warned lenders against making threats, verbally abusing borrowers, contacting their family members or employers to exert pressure, or publicly shaming debtors on WhatsApp and other social media platforms.
“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,” the corporation said.
It emphasised that indebtedness is not a criminal offence and that borrowers continue to enjoy their rights even when they default on loan repayments.
“Being in debt is not a crime, but unfair treatment is,” CREDICORP stated.
The corporation referenced Section 34 of the Nigerian Constitution, which guarantees the right to the dignity of the human person. It also noted that the lending framework of the Federal Competition and Consumer Protection Commission (FCCPC) prohibits intimidation and violations of consumers’ privacy.
CREDICORP advised borrowers who believe their rights have been violated during debt recovery to document the alleged misconduct and report it to the FCCPC or the Central Bank of Nigeria (CBN).
The latest warning follows an earlier advisory by the corporation urging Nigerians to consider the broader implications of taking loans rather than focusing only on interest rates.
“A loan is more than just an interest rate. Before deciding whether a loan is right for you, look at the full cost of the credit, the repayment terms, what the funds will help you achieve, and the value they could create,” it said.
CREDICORP added, “Don’t judge the loan by one number.”
The corporation, however, clarified that the latest guidance was issued for informational purposes and should not be regarded as legal advice or official policy guidance.
