CREDICORP warns Nigerian lenders against borrower harassment

The Nigerian Consumer Credit Corporation (CREDICORP) has issued a warning to lenders against using abusive or illegal tactics to recover unpaid loans. The corporation emphasized that debt recovery must be conducted lawfully and with respect for the dignity of consumers.

Prohibited practices include making threats, physical or verbal abuse, contacting a borrower’s family members or employers, and public shaming on social media platforms such as WhatsApp. CREDICORP clarified that being in debt is not a criminal offense and that borrowers retain their constitutional rights even when defaulting on repayments.

Citing Section 34 of the Nigerian Constitution, which guarantees the right to human dignity, the corporation noted that the Federal Competition and Consumer Protection Commission (FCCPC) lending framework prohibits intimidation and privacy violations. Borrowers who experience misconduct are advised to document the incidents and report them to the FCCPC or the Central Bank of Nigeria (CBN).