10 Rules to Never Be a Victim of Predatory Loan Apps

Based on everything we have learned from these five news stories, here are 10 simple rules that will protect you and your family.

Rule #1: The Contact List Rule

Never, ever give a loan app access to your contacts.

A legitimate lender does not need to know your mother's phone number. If an app requires this access to function, it is because their business model is blackmail, not lending.

Rule #2: The Registry Rule

Before downloading any loan app, check your country's official registry of approved lenders.

• Nigeria: FCCPC and CBN websites
• India: RBI approved list
• Philippines: SEC registered lenders
• Ghana: Bank of Ghana registry
• Kenya: CBK digital lender list

If the app is not on the list, DO NOT DOWNLOAD IT.

Rule #3: The One Loan Rule

Never have more than one active digital loan at a time.

If you already have a loan, pay it off before taking another. Do not stack loans. Do not roll over loans. Do not borrow to pay another loan.

Rule #4: The 24-Hour Rule

Wait 24 hours before applying for any loan.

Desperation leads to bad decisions. If you need money today, wait until tomorrow. If you still need it tomorrow, apply ONCE. If rejected, do not apply to ten more apps. Stop and think.

Rule #5: The Pop-Up Rule

Demand to see the total cost before you sign.

If an app does not clearly show you:

• How much you will receive
• How much you must repay
• The exact date of repayment

...then DO NOT PROCEED.

Rule #6: The Permission Rule

Deny ALL permissions unless absolutely necessary.

When you install an app, your phone will ask for permissions. Say NO to:

• Contacts
• Photos
• Storage
• Location (unless the app needs to verify your address for legal reasons)

If the app will not work without these permissions, DELETE IT.

Rule #7: The Alternative Rule

Exhaust all alternatives before using a loan app.

In order from BEST to WORST:

1. Family or friend (zero interest)
2. Church or community group (zero interest)
3. Employer salary advance (low or zero interest)
4. Cooperative or credit union (low interest)
5. Rotating savings group (Ajo, Esusu, Susu, Chama — zero interest)
6. Licensed digital lender (regulated interest)
7. Unlicensed loan app (NEVER USE)

Rule #8: The Documentation Rule

Save everything.

If you do take a loan, save:

• Screenshots of the application
• Screenshots of the approval
• Screenshots of the repayment terms
• Screenshots of every payment you make
• Screenshots of any harassment messages

This evidence is your only weapon if things go wrong.

Rule #9: The Reporting Rule

Report predators immediately.

If a loan app harasses you, do not suffer in silence. Report to:

• Your local police
• Your country's cybercrime unit
• Your country's consumer protection agency
• Your country's central bank

One complaint might not change anything. But 47,000 complaints (like in the Philippines) forces action.

Rule #10: The Sharing Rule

Tell everyone you know.

Share this article. Share your story. Warn your friends. Warn your family. Warn your church members. Warn your neighbors.

The only way to defeat predatory loan apps is to take away their customers. An informed person is a predator's worst enemy.