Frequently Asked Questions About PalmCash

1. Can I Pay Gradually Until I Finish Paying Them?

No. Partial payments are strongly discouraged.

When you make a partial payment, the money goes entirely to overdue interest and late fees first. Your original principal remains untouched. This resets the delinquency clock, allowing more interest to compound daily. This creates a debt cycle that grows faster than you can pay.

Your Rights: You have the right to fair treatment. Many lenders in this category avoid court because their practices may not withstand legal scrutiny. Consider addressing the matter through proper legal channels rather than engaging in endless partial payments.

Better Solution: Stop all payments immediately. Save for a single lump-sum settlement offer. If harassed, document everything and consult a lawyer about your options.

2. Can I Still Pay Them If They Defame Me?

Defamation includes contacting your employer, family, or friends with false or embarrassing information. This violates Nigerian consumer protection laws and the terms of any legitimate agreement. Paying after defamation rewards illegal behavior and encourages more harassment.

Your Rights: You have the right to privacy and protection from harassment under the FCCPC guidelines and the Nigerian Data Protection Regulation.

What To Do Instead:

• Report the lender to the FCCPC at lenderstaskforce@fccpc.gov.ng
• File a complaint with the CBN Consumer Protection Department
• Document all defamatory messages with screenshots
• Inform the lender that you will only communicate through legal counsel
• Consider filing a formal complaint in court for damages

3. Can They Post My Pictures on Social Media?

Some apps may threaten this, but the threat is often empty.

These platforms typically have small follower counts. Their goal is intimidation, not actual exposure. Posting your picture without consent violates privacy laws and platform policies.

Your Rights: The Nigerian Data Protection Regulation prohibits sharing personal information without consent. This is also a violation of Google Play and Apple App Store policies.

What To Do If This Happens:

• Report the social media account immediately for harassment and privacy violation
• Take screenshots as evidence
• File a complaint with the FCCPC
• Consult a lawyer about suing for defamation and privacy violations

4. Can They Auto-Debit My Account?

Yes, if you linked a debit card. Here is how to stop it.

PalmCash can attempt auto-debits using the card information you provided during registration. Blocking your card is the most effective solution.

About GSI: Only CBN-licensed banks and microfinance banks can use the Global Standing Instruction (GSI). GSI allows lenders to sweep funds from any account linked to your BVN across different banks. Most mild loan apps like PalmCash do not have GSI access.

Immediate Steps:

• Block the debit card you used through your banking app
• Request a replacement card with a new number
• Monitor your account for unauthorized debits
• Report any illegal deductions to your bank immediately

5. Can They Come to My House or Office to Arrest Me?

No. Loan apps cannot arrest you or send anyone to arrest you.

Debt is a civil matter, not a criminal offense. In Nigeria, only law enforcement with a valid warrant can make an arrest. A loan app has no legal authority to detain you or send agents to your home for debt collection.

Your Rights: You cannot be imprisoned for failing to repay a loan. Threats of arrest are intimidation tactics designed to pressure you into paying.

What To Do:

• Ignore arrest threats
• Document the threat with screenshots
• Report the lender to the FCCPC for harassment
• If a licensed lender sends someone to your home, file a police report for trespassing and intimidation

6. Can This Loan App Defame Me?

Yes and no. It depends on the app's permissions and practices.

Some apps access your contacts through permissions you granted during installation. Older apps (pre-2023) may have collected contact data before stricter Google Play policies took effect. Others use hidden terms in their agreements.

How To Prevent Defamation:

• Revoke contact permissions in your phone settings
• Uninstall the app after taking a loan if possible
• Use a separate phone number for loan apps
• Never grant SMS or call log permissions
• Read all permission requests carefully before accepting

If Defamation Occurs: Document everything, report to FCCPC, and consider legal action.

7. Can This Loan App Hack My Account?

An app cannot directly "hack" your bank, but it can steal data that leads to access.

Malicious apps may capture your login credentials, BVN, or OTPs through fake interfaces or permission abuse. Apps downloaded outside official stores (Google Play, Apple App Store) pose the highest risk.

Safety Tips:

• Never share your BVN, PIN, or OTP with anyone
• Download apps only from official stores
• Revoke unnecessary permissions after loan approval
• Use a dedicated bank account with minimal funds for loan apps
• Enable two-factor authentication on your primary bank accounts

Warning: If you suspect your account is compromised, contact your bank immediately and change all passwords.

8. Do I Need to Generate a Disclaimer for This Loan App?

A disclaimer is needed only if the app has contact/call log access AND operates without a valid license.

A disclaimer is a formal notice stating that you do not authorize the app to contact your friends, family, or employer. It serves as evidence if the app later defames you.

Adverse Effects of Defamation:

• Embarrassment and reputational damage
• Loss of job opportunities
• Strained personal relationships
• Emotional distress

When To Generate a Disclaimer:

• The app requested access to your contacts
• You cannot verify the app's CBN license
• You have already received harassment messages

How To Use a Disclaimer: Send it via email to the lender and keep a copy. If defamation occurs, present the disclaimer as proof that you withdrew consent.

9. Do You Suggest I Fight Back Against This Loan App If They Send Abusive Messages?

Yes. Fight back seriously and strategically.

These lenders rely on fear and intimidation. When you respond with documentation, regulatory complaints, and legal threats, you take away their power.

How To Fight Back:

• Document every abusive message with screenshots
• File a formal complaint with the FCCPC
• Report the app to Google Play for policy violations
• Send a cease-and-desist notice to the lender
• Threaten legal action for harassment and defamation

Know Your Rights: The FCCPC has delisted and prosecuted illegal loan apps. Your reports contribute to enforcement actions that protect all consumers.

Do not engage in insults or threats. Stay professional, document everything, and escalate through proper channels.

10. Do You Think I Should Stop Borrowing from This Loan App?

Yes. Stop borrowing from any app charging above 5% monthly interest.

Loan apps charging over 10% monthly interest are loan sharks. Apps offering 7-day repayment terms are loan barracudas—they trap you in a cycle of constant borrowing and fees.

Why You Should Stop:

• High interest leads to debt addiction
• Late fees compound faster than you can earn
• Harassment escalates with each new loan
• Your credit profile may be damaged

Better Alternatives:

• Borrow from family or friends
• Join a local cooperative society (Esusu)
• Use salary advance programs at your workplace
• Build an emergency savings fund over time

11. How a Malicious Loan App Can Compromise Your Details

Malicious apps use several methods to steal your information.

Common Methods:

• Phishing: Fake login pages that capture your credentials
• Permission abuse: Reading SMS messages for OTPs and transaction alerts
• Contact harvesting: Stealing your entire phonebook
• Fake loan approval pages: Tricking you into entering bank details
• Malware injection: Hidden code that runs in the background

Safety Tips:

• Never click links in SMS or WhatsApp from unknown senders
• Do not share OTPs, BVN, or ATM PINs
• Revoke SMS and contact permissions after loan approval
• Use official app stores only
• Install a reputable mobile security app

12. How Do I Get Rid of Their Daily Messages and Calls?

Use a combination of blocking tools and strategic pushback.

For Calls:

• Install Truecaller Premium to block spam and unknown numbers
• Report numbers as spam within Truecaller
• Block numbers directly in your phone settings

For WhatsApp:

• Block the sender immediately
• Report the number as spam to WhatsApp
• Reply once: "I have reported you to the FCCPC. Do not contact me again."

Strategic Pushback: When lenders realize you are documenting everything and filing complaints, they often abandon your case to focus on easier targets.

Legal Protection: The FCCPC prohibits harassment by digital lenders. File a complaint if calls continue after you request them to stop.

13. I Received Several Emails from Them Claiming to Be from the Court. What Should I Do?

These emails are almost always fake. Do not panic.

Illegal or mild loan apps rarely take borrowers to court because their own practices violate regulations. Fake court emails are intimidation tactics.

How To Verify Authentic Emails:

• Check the sender's email address carefully (not just the display name)
• Nigerian courts use official .gov.ng email domains
• Courts do not send judgments or summons via personal email
• Call the court directly using a verified phone number

What To Do:

• Ignore and delete the emails
• Do not click any links or open attachments
• Report the sender to your email provider as phishing
• Add the emails to your evidence collection for FCCPC complaints

15. They Sent a Message That They Will Block My BVN. Is It Possible?

No. Loan apps cannot block your BVN.

The Bank Verification Number (BVN) is managed exclusively by the Central Bank of Nigeria and licensed financial institutions. A loan app has no authority to access, modify, or block your BVN.

What BVN Actually Does:

• Uniquely identifies you across all Nigerian banks
• Helps prevent identity fraud
• Cannot be "blocked" by any private company

Why They Say This: It is a pure intimidation tactic. They want you to believe they have power over your banking access. They do not.

What To Do: Ignore the threat. If a licensed bank is involved, contact them directly to verify your BVN status remains normal.

16. What Will Happen If I Pay Only the Loan Amount and Interest, Without Paying Overdue Charges?

This is a mistake. Your payment will go to overdue charges first.

Most loan agreements specify that payments apply to fees, late charges, and interest before reducing the principal. Paying without addressing overdue charges leaves the original debt intact.

Better Strategy:

• Stop making any payments temporarily
• Wait 30-90 days for the situation to stabilize
• Check your credit report for any negative listings
• Negotiate a settlement for only the principal plus original interest
• Get the settlement agreement in writing before paying

Do not negotiate while actively being harassed. Wait until the lender is more willing to compromise.

17. When Will They Stop Adding Overdue Interest?

Theoretically, interest should stop after 90 days under CBN guidelines.

The CBN allows a maximum default interest rate of 1% per month after the loan becomes overdue. However, many mild loan apps violate this rule and continue adding daily fees illegally.

Reality:

• Licensed lenders must follow the 90-day cap
• Unlicensed apps add interest indefinitely
• Some apps add "rollover fees" that bypass interest caps

What To Do:

• If licensed, quote CBN guidelines to the lender
• If unlicensed, stop paying entirely
• Report excessive interest to the FCCPC
• Consider legal advice for disputing illegal charges

18. Will They Report Me to the Credit Bureau?

About 90% of mild loan apps cannot report to credit bureaus.

Only CBN-licensed financial institutions have direct access to credit bureaus like CRC Credit Bureau or CR Services. Most digital lenders in the mild category operate without these licenses.

If They Are Licensed:

• They can report late payments
• They must report accurately
• You have the right to dispute errors

What Is a Credit Bureau? A credit bureau collects your borrowing history. Banks use this data to decide whether to lend to you. Wrongful negative listings can affect your ability to get mortgages, car loans, or credit cards.

If You Find an Error:

• Request your free credit report annually
• File a dispute directly with the credit bureau
• Provide evidence that the listing is incorrect
• Also report the lender to the CBN