CREDICORP to lenders: No threats, abuse, public shaming of borrowers over unpaid loans

The Nigerian Consumer Credit Corporation (CREDICORP) has warned lenders against threatening, abusing or publicly shaming borrowers over unpaid loans, stressing that debt recovery must be carried out lawfully and with respect for consumers’ dignity.

The corporation issued the warning in a statement on Thursday, saying lenders must not contact borrowers’ family members or employers or expose their debts 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,” CREDICORP said.

The corporation stressed that loan default did not amount to a criminal offence and that borrowers retained their rights even when they failed to meet their repayment obligations.

“Being in debt is not a crime, but unfair treatment is,” it said.

CREDICORP also referenced Section 34 of the Nigerian Constitution, which guarantees the right to the dignity of the human person, noting that the Federal Competition and Consumer Protection Commission’s lending framework prohibits intimidation and violations of borrowers’ privacy.

The corporation advised borrowers who believe their rights have been violated during debt recovery to document the alleged misconduct and report it to the Federal Competition and Consumer Protection Commission (FCCPC) or the Central Bank of Nigeria (CBN).

The warning followed an earlier advisory by CREDICORP urging Nigerians to consider the broader implications of taking loans instead of focusing solely 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 had said.

CREDICORP added, “Don’t judge the loan by one number.”

The corporation clarified that the latest guidance was issued for informational purposes and did not constitute legal advice or official policy guidance.