There have been numerous cases of fake loan apps recently.
Due to the poor level of cyber security in Nigeria, some fraudsters are now teaming up to create an online loan lending app.
Some of these fake loan apps have been banned, but some are still operating.
It’s now difficult to distinguish between a legit loan app and these fraudulent ones, as they will be called loan sharks.
After reading this blog post, you will get to know the solution to follow in order to stop this loan app from debiting your account.
I would endeavor to read this till the end as all the information provided here will be very helpful to any person who wants to stop loan sharks from defrauding or debiting them.
How to stop loan apps from debiting your account without your consent.
This loan app builds some software that can access your bank account once you provide your BVN to them.
This is why you should not give anyone your ATM card or let anyone know your bank verification number.
These loan sharks, because of how far they have gone in this online stuff, can debit your bank account with the BVN details you provide to them.
There is a procedure to follow in order to stop the loan app from automatically debiting your account.
The first thing you have to do is change your bank account details which you gave them (e.g. if your BVN is 12322458573, change it to 12722558573).
This will prevent them from debiting your account since the BVN details provided to them are not correct.
When you want to pay back your loan, you can now remove the fake BVN, add your correct BVN, and make the payment.
You can also prevent or stop these loan sharks from automatically debiting you by removing the bank details you uploaded on your app user dashboard.
At the time you’re applying for a loan, they will ask you to provide your bank account details, which include your account number, account name, and ATM card numbers.
To debit your account, this is what they will use to debit your account if they are a fake loan app. To protect your money, delete the details once you pay back the loan.
Can a loan app withdraw money from my bank account without my permission?
Loan apps can withdraw money from your bank account without your permission. That is why it is very important for you to block their access to your bank account.
We have seen many people who got scammed by loan apps, like this man below. He explains his experience with a shark loan app which debited his bank account.
A woman explained how this shark loan withdraws 400,000 from her bank account without her giving them permission to do so.
I am so sorry madam, these people dealt with me last year. They removed 400k from my account. I was sick for weeks. The money was not even mine. It belonged to my club money. They wanted to use it to buy gifts and close the meeting for the year. I almost died. I went to my bank. They told me that I was the one that gave out my account details to some unknown app that they have been warning customers about. I sent messages to them. They denied it. Lcredit even told me that I should first give them my money while I go and investigate. Till today I didn’t reply to their calls. They sent messages to all my contacts calling me a fraudulent person I don’t care. I have been given until the end of this month by my club to pay up the money. I have not recovered from the shock.
Also, this man below explained how this loan app withdraws the money he wanted to use to pay his child’s school fees.
Please make them help me Ohh, Cashingng gave me a loan of 8000 for almost 5 months now. The app is now working again and they are not even on Google play store anymore for a very long time now. I have no means to even repay them. This morning we were getting ready and I just received a debit of 36,000 Maria on my sim and when I checked, it was debited from Cashingng. No means of contacting them and the app is no more available. My son couldn’t start school today and to gather that amount again is going to be by God’s own grace. I feel so depressed right now and I have no idea what to do. I’ve been thinking since morning.
There’s also a much more complicated story of someone who hasn’t borrowed any money but the app keeps debiting his bank account.
My own case seems a bit different o. I requested for a loan from Chacha Loan and I was never credited, yet they claimed they had sent my money and once it’s due date they auto debited me. I stopped putting money in that account. Now they have sent msgs to all my contacts claiming I am a chronic debtor. Please I need anylink to reach them cos all the numbers on their app are switched off.
With all this, you should know that this loan app can debit your bank account without your consent.
This act is against the law, though these loan sharks don’t follow the law .
How to report a fake loan app.
If you come across a fake loan app that does not follow the FCCPC rules, you can report them to this email below for proper investigation.
The e-mail address to contact the task force on complaints against loan apps is firstname.lastname@example.org.
Can I go to jail for not paying online loans in Nigeria?
Failure to pay back a loan could result in court charges in Nigeria, but not much is known about this, and for good reasons. Loan defaulting is a civil matter and not a criminal offence, so you typically won’t go to jail for defaulting on a loan.
Read more about online loan application here