The Nigerian Consumer Credit Corporation (CREDICORP) has warned lenders against using threats, harassment, abuse and public shaming as methods of recovering debts.
CREDICORP issued the warning in a statement on Thursday, particularly cautioning digital lenders and informal loan operators against unlawful recovery practices.
The corporation said lenders must respect the dignity and privacy of borrowers, even when they default on loan repayments.
It said lenders have no right to threaten or verbally abuse borrowers, contact their families or employers without consent, or expose debtors on WhatsApp groups and social media.
“Falling behind on a loan does not give any lender the right to harass you. Debt recovery must follow lawful collection practices,” CREDICORP said.
It stressed that being indebted does not strip borrowers of their fundamental rights.
“Being in debt is not a crime, but unfair treatment is,” the corporation added.
CREDICORP cited Section 34 of the Nigerian Constitution, which guarantees the right to the dignity of the human person.
It also referenced the lending framework of the Federal Competition and Consumer Protection Commission (FCCPC), which prohibits intimidation and privacy violations by lenders.
The corporation warned that lenders who engage in abusive recovery practices could face regulatory and legal consequences.
CREDICORP also advised borrowers who experience harassment to document the incidents by keeping screenshots, recording calls and noting the dates and details of the misconduct.
It urged affected borrowers to report such cases to the FCCPC or the Central Bank of Nigeria (CBN), especially where licensed financial institutions are involved.
The warning comes amid growing concerns over aggressive debt recovery methods used by some digital lending platforms and informal credit operators in Nigeria.
CREDICORP has also advised Nigerians to consider more than interest rates when choosing loan products.
According to the corporation, borrowers should examine the total cost of credit, repayment conditions and the purpose of the loan before taking it.
“A loan is more than just an interest rate,” CREDICORP said, urging consumers not to judge a loan by a single figure.
The corporation said its advisories are aimed at promoting responsible borrowing while protecting consumers from predatory lending practices.
It clarified, however, that the latest guidance is informational and does not constitute legal advice or official regulatory policy.
With Nigeria’s digital lending market expanding rapidly, CREDICORP said borrowers must understand their rights and lenders must ensure that debt recovery remains lawful and respectful.
