Loan App Posts Photos of Debtors Publicly Online with a Direct Message to Them, Nigerians React

• A loan app, Delinquent Loans, has sparked controversy by posting photos of 87 debtors online in an attempt to recover unpaid loans
• The app's unconventional approach, showcased in a series of TikTok videos, has received mixed reactions, with some supporting the need for debt recovery and others criticizing it as an invasion of privacy
• This public shaming strategy has ignited a debate about ethics, legality, and the broader consequences of defaulting on loans

A loan app, Delinquent Loans, has stirred controversy after it shared photos of 87 debtors online in a bold attempt to recover unpaid loans.

The incident came to light through a series of TikTok videos posted by the app, where pictures of the debtors were uploaded with the caption, "Please settle your loans," as a public reminder to repay their debts, PUNCH reports.

Sparks Controversy

These videos began trending on December 4 and have drawn widespread attention and mixed reactions from social media users.

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Many people used various platforms to express their opinions on the app's unconventional approach.

One user, King, identified as #KingSuleiman27 on X (formerly Twitter), commented, "Has anyone seen the video posted by a loan app featuring pictures of 87 debtors owing them? You better check it out to make sure your picture isn’t among them ooo!" Similarly, Prince Olugbade, tweeting as #latmos997, wrote, "As they don post their pictures, make them go collect the money from the general public wey view am, or post am for YouTube use the views settle the debt."

The unconventional strategy has also faced criticism. FaVōuR, known as fhavourabia, argued, "Actually, if we have a functioning government, these people should be sued for defamation." Agbalaka, using the handle #CroBender, noted, "Taking money from shylocks comes with regrettable consequences."

Other users highlighted the broader consequences of defaulting on loans. Smiles Ebony, tweeting as #smileebony, explained, "There’s something all these people don’t understand. After you default on any loan, you will be reported to the credit bureau, and this will affect anyone." Emma, identified as #Emmabest, raised concerns, stating, "Most of these persons are not aware of this loan. Suddenly, they receive a call asking them to pay back the money they borrowed."

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Loan Apps in Nigeria

Loan apps in Nigeria have become increasingly popular, providing quick and easy access to loans for individuals and businesses.

These apps often offer collateral-free loans with minimal documentation, making them convenient for those needing immediate financial assistance.

However, the rise of loan apps has also led to concerns about unethical practices, such as high interest rates and aggressive debt recovery methods, including public shaming and harassment.

See the photos here:

FG Announces 50 New Loan Apps

Legit.ng reported that the Federal Competition and Consumer Protection Commission (FCCPC) announced that the total number of approved loan apps in Nigeria was 211 as of the end of October 2023.

The commission disclosed this in a statement signed by Babatunde Irukera, its Executive Vice-Chairman/Chief Executive Officer.

According to the statement's details, the approved loan apps comprise 172 with full approval and 39 others with conditional approval.

Source: Legit.ng