What will happen if I refuse to pay my online loan, and is loan default a criminal offence in Nigeria? These are common questions for most people who want to know what happened to loan defaulters in Nigeria.
So, if you want to know what happens if you borrow money and don’t pay it back, especially on the PalmPay loan app, keep reading this post to find out the exact thing that will happen to you when you refuse to pay PalmPay back.
You must have seen different PalmPay comedy skits where PalmPay agents arrest defaulters. As funny as it could be, it is also scary for those owing PalmPay and other loan apps as they can’t face the shame of being caught in the public or bundled out of the stage while they’re still performing because they borrowed a loan from PalmPay.
However, PalmPay on several tweets has cleared the air regarding the trendy videos of PalmPay agents disguising themselves to hold those who couldn’t pay back the loan they got from PalmPAy Limited.
If you don’t repay a loan from Palmpay or any other financial institution, it can have various consequences. Here are some possible outcomes:
- Late payment fees: Palmpay may charge you additional fees for late payment, increasing the overall amount you owe.
- Negative credit reporting: Palmpay may report your delinquent account to credit bureaus, which can negatively impact your credit score. A lower credit score can make it difficult for you to obtain loans or credit in the future.
- Debt collection efforts: Palmpay may employ debt collection agencies to pursue the repayment of the loan. These agencies may contact you via phone, mail, or other means to request payment.
- Legal action: In extreme cases, if you consistently fail to repay the loan, Palmpay may take legal action against you. This could result in a court judgment against you, and you may be required to pay the outstanding balance along with legal fees.
- Seizure of collateral (if applicable): If the loan is secured by collateral, such as a car or property, Palmpay may have the right to seize the collateral to recover its losses.
How do I stop loan app from accessing my contacts?
To stop loan app from accessing your contact list, follow the steps below:
Go to phone settings >> Apps and Permission >> Turn off access to contacts.
Can a loan app block my BVN?
No, loan apps can’t block your BVN,
Your BVN can only be used to reveal your identity and possibly prevent other loan apps from giving you a loan.
Can a loan app withdraw my money?
Loan apps cannot withdraw money from your bank account, it is your responsibility to repay the loan before the stipulated deadline to avoid a bad credit score and possible harassment of bulk messaging your contact and other forms as previously experienced in Nigeria. However, you have the right to report loan apps for where they’ve made offenses against you.
It’s important to note that the specific consequences may vary depending on the terms and conditions of the loan agreement you entered into with Palmpay. If you’re facing difficulty in repaying a loan, it’s generally advisable to contact Palmpay and discuss your situation with them. They may be willing to work out a repayment plan or provide alternatives to help you manage the debt.