What or who is a loan shark? According to an online dictionary, a loan shark is a person or company who offers loans at extremely high interest rates, has strict terms of collection upon failure, and generally operates outside the law.
The source further explains that due to the fact that loan sharks operate mostly illegally, they cannot reasonably expect to be able to use the legal system to collect such debts, thus they often resort to enforcing repayment by terms of blackmail and threats of violence.
Characteristics of Loan Sharks
Do you wish to know how to identify loan sharks in Nigeria? Find below ways to spot them from afar:
1. High interest rates.
2. No license or registration
3. High-pressure sales tactics
4. Unclear terms and conditions.
5. Outrageous fees and penalties
6. Recovering loans with threats or blackmail
7. Giving unsolicited offers and incentives
8. Minimal or no documentation
9. Abuse of customers; personal details like contacts and BVN
10. Rarely any physical address
Looking at the above, you'd agree that most online quick loan apps in Nigeria fall under this category.
A VERY SAD STORY
I heard once of an undergraduate who took loan from an online loan shark app, . Because his repayment was delayed, the loan shark had programmed the loan app to have access to the call list and contact list of the customer. The loan shark sent incriminating messages to all the contacts of the customer. he almost committed suicide afterwards.
Note please that offline loan companies can be sharks too depending on their mode of operations and recovery.
While Nigerians need more orientation and enlightenment in order to stay clear of these apps, we still need the help of the Federal Competition & Consumer Protection Commission FCCPC https://fccpc.gov.ng/ to continue to protect Nigerians from the illegal and criminal actions of these loan sharks.
Many loan apps like that have been banned from the play store. But they are like animal ticks. They keep returning with new names after being banned for illegal acts.
See:
1. New: 37 More Illegal Loan Apps Delisted By FG/FCCPC Nigeria
Avoid online loan sharks.
