It is no longer news that loan apps have grown wings, with the approval of 222 money lending apps in Nigeria. Yes, you heard me right, 222, with each loan app operating a minimum of 5 different apps, and some even offering 4 different packages in one. With this development, consumers or borrowers have no choice but to refrain from borrowing and look elsewhere for their money, even with interest rates as high as 50% to 70% in just 7 days.
This has given loan app agents the opportunity to think outside the box and create Loan App Ponzi Schemes (Nigerians no dey carry last). They start preying on customers who are desperately seeking solutions, and also create opportunities to defraud their companies and divert thousands into their pockets.
Here are the 3 schemes they have developed to wreak havoc in our society:
- Clearing Your Contacts Scheme: Many loan app agents have created (Admin) Facebook Groups, Telegram channels, WhatsApp groups, among others, to lure people in by offering free services like 'I will help you clear your contacts from their database,' which is a pain point for borrowers. Little do they know that they are falling into a trap of endless borrowing. They may actually clear a few of your contacts, depending on the privileges they have. Some do not have such privileges, but the end goal is devastating. They will use your account to borrow money from all other loan apps associated with the company's apps and divert the money to an account not directly traceable to them, but accessible through the back door. This way, they enrich themselves with millions. Instances of 300k, 200k, and 500k are being reported to us, leaving the borrowers with huge amounts of debt to repay.
- The Transfer to Account Scheme: They will give you an account to transfer a certain amount, promising to clear the remaining loans. The moment you transfer, they will block your number, leaving you to face the consequences.
- Forcing Loans Down Your Throat Scheme: The moment you download the loan apps and complete your KYC (Know Your Customer), once you check your loan eligibility, your account will be created. Even if you return the principal, they will still defame you. They do this because they have monthly targets to meet in order to collect bonuses. The more loans they give out, the more bonuses they receive. This also applies to collector agents; the more loans they retrieve, the more bonuses they earn. This is why they can go to any lengths to defame their customers, all in the name of bonuses.
The best thing you can do for yourself is to stop borrowing from loan sharks; they have nothing to offer you but pain. Never pay a dime to Facebook group admins or anyone to help you clear your contacts, as you'll end up multiplying your debt. If you have been defamed, never pay back. Paying back only shows how foolish you are and further empowers them to do more. Your way to freedom is to develop thick skin and face your accuser head-on. You don’t face the devil by begging but by confronting him, much less a mere agent who has lost his identity.
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