Frequently Asked Questions about Auto-Debit by Loan Apps

It amazes me why some people still cling to outdated knowledge and brag about it.

Just think about it yourself

Does Global Standing Instruction (GSI) exist in Nigeria: YES

Does Credit Bureau Syste exist in Nigeria: YES

Which company can access GSI: Banks & Financial Institutions through The Nigeria Inter-Bank Settlement System (NIBSS)

Who can report bad debt to the Credit Bureau: Approved Financial Institutions and Banks

Which of the loan Apps can report me: Currently about 10 Kindly check the FCCPC website and scroll down to CBN-approved Microfinance

What about other loan Apps why is it that they cannot auto-debit me: Only CBN licensed financial institutions can recover loans using GSI. Therefore, commercial banks, microfinance banks, finance companies, investment banks and mortgage banks are authorized to use GSI. This means money lenders who operate with a MoneyLender License can’t access GSI services to recover their past due loans.

Are you suggesting that all loan apps can report to credit bureaus? Not at all. More than 80% of them are not licensed, so they cannot report, which is why they defame. However, sooner or later, after they have exploited Nigerians, they may decide to register. Registration costs barely "100 million naira (Not sure).

If approved and Licensed loan apps come together and file reports of inflated figures to the CBN, claiming they've lost x amount of billions Naira to customers, do you think the CBN will simply say, 'You see, you have to forget about the money'? Certainly not.

Who are the customers? Common and low-class Nigerians.

Does it affect the rich people? Not at all. They don't even know such apps exist. they can even sack their staff because of it.

Who is fighting for the masses? No one. They are all scattered across social media and suffering from the onslaught of loan apps.

Do they report to FCCPC? Less than 0.5%. The rest accept it as fate.

Yet some people will argue with outdated knowledge

Maybe when you go through the following documents you'll sit up and stop borrowing! I hope you'll not learn the hard way

https://www.cbn.gov.ng/Out/2022/FPRD/Circular%20on%20Global%20Standing%20Instruction%20(GSI)%20for%20Individuals.pdf

Check this link to see all approved loan apps by FCCPC

https://fccpc.gov.ng/registration-of-digital-money-lenders/?fbclid=IwAR1fGN27A0dk2RiURsrRHYdBGXpE2IF0cPhdtXhZQ_ByAf2paK7BY9vzSo0_aem_AcbeB_hW4x31iPY09nKI-gmSYEyqAArFtKfs6pTHR0EIvlvRi7Bp_7xXnua5ZFIqgK6PkcHS1eykSsB6JalXkYve

Even with 43 delisted loan apps are still actively destroying the lives of people