Can Loan Apps Sue or Arrest You for Defaulting in Loan Repayment


The internet is now buzzing with so much loans being granted to people without collateral or physical present of documents. The banks are trying as much as possible to give out loans to people through their apps, ussd or loan forms but the one that seems a little of hitch is the flooding of loan apps all around the internet with loan apps even on Google play store. 

These loan apps give out loans without collateral only through BVN and they disburse out their loans but the problem with loan app is that their loans come with lot of harassment and problem if you fail to repay back your loan usually within 7 to 14 days repayment period. They will call your contacts; send all form of defamatory things about you. This is what I feel is their highest power used by their loan collection agent.


So, if you collect loan through the bank, it doesn’t come with any form of harassment or problem especially if you run a salary account because the money will be deducted easily from your account without any third party intervention into the matter but for loan apps, it’s a different thing, it’s a different ball game because they will be harsh on you to pay back. 


Now, back to the question that “can loan app sue you or arrest you for defaulting in loan payment” The answer is NO. No is the surest answer. I have seen people owe banks, owe Governments and nothing happen. You go to court and decide how you will begin to pay your loan gradually and that is all. So for loan app telling you that they will arrest you or sue you to court is really not possible. You don’t need to be scared but I will tell you not to borrow money from loan app and avoid them like plague.  

I post on this site an update which talks more on the reasons why you need to avoid loan app like plague which you will find as you read on with this post. I am sure you will learn a lot reading it. I have various Groups on Facebook with screenshots of people, who loan apps have defamed because they owe them. 

I also have screenshots where people posted about loan apps like Lcredit, Sokoloan, Gocash,Ajeloan, etc all claiming to block your BVN and reporting you to credit bureau and you begin to get depressed because of these loan app. 

Some even go as far as borrowing from other loan app to pay another loan app and they get stuck to the extent that they get to the breaking point owing so many apps which is very bad.
Loan app can also send messages to your contacts, call your contacts because they have your contact list when you collected the first loan from them, they can also call your whatsapp list or send messages to them and telling them to pay up the loan you owe but threatening to arrest or sue you to court can’t work.
The reasons loan app can’t sue you to court or arrest you are based on the following findings;

1. Not legit: So, loan app can sue you or arrest you because many of these loan apps aren’t legit. Some of them don’t even have license to operate. Many loan app are not owned by Nigerians but chinese and Indians without proper license. CBN, FCCPC, and NITDA have warned people to stay away from loan apps like lCredit and sokoloan, gocash etc that many of these loan apps are running illegal business. 

Some are owned by corrupt Nigerians reaping the middle class of their hard earned money. Let your mind be peace for any loan app cannot arrest you or sue you to court because you failed in repaying your loan. Some people default only two days and Lcredit is already calling contacts that they will arrest you or sue you to court even on the sick bed that some people are. It’s so bad and let your mind be at peace that you can’t arrest for that.

2.  You’ve been Defamed: If  any of the loan app send messages to your contact list or call them that you are a scammer, that you run away with company’s money or you are sick and came to them for help, then they want to collect any money from you. Any police that will come and arrest you for this is simple corrupt and please share such experience while we post on twitter as soon as possible. 

Defamation is also a good case in the court of law, if any loan app will sue you to court, and then be ready to sue them for defaming your character. I don’t think any of the representatives will come to you for that because they are only collection agent used by corrupt loan app owners.

3. Government ban:   Loan apps can arrest you to sue you to court because they are already being placed on ban by the Government through the CBN. People still patronize them because they don’t know much about them but saw their adverts on loan and fall for it. 

If you are already in it that is you owe them, then you need to be careful, you need to change your card password and pin as well as transaction pin because they can do anything with your account. Some withdraw even more than their money but who will you report to?

4. 7 to 14days repayment: As long as any loan app offers 7 to 14 days repayment then they are illegal and not registered to run a business. Even on Google play that you saw their loan adverts, they are still illegal and some have been taken off the play store because Google only recognizes loan repayment of nothing less than 30 days to 60 days of repayment, so if you see a loan app that tell you to pay back in 7 to 14 days like Lcredit, please run for your life and be sure that you can’t be arrested by this loan app or sue for this, let them come because you owe them money.  

5.  No office, Most of these loan apps don’t have offices. The Government through FCCPC searched for them and discovered many of them don’t even have offices, some loan app share same office which means some are owned by same company like sokoloan and Cashigo that own so many of them.  Apps that don’t have office for complain or official office can’t be a threat to you claiming they can arrest or sue you to court is a pure lie.  

In conclusion, don’t be fooled, don’t panic because a loan app wants to sue you or arrest you for defaulting in loan repayment. It’s not true and based on the reasons discussed above; loan app can arrest you or sue you to court. Loan app doesn’t have offices, they are illegal, many of them aren’t licensed, some are on ban as we talk, seek legit ways to get loan from banks through your Nigerian banks and please stay away from loan app that is not Branch, Fairmoney or Crabon. Thanks for reading.


3 thoughts on “Can Loan Apps Sue or Arrest You for Defaulting in Loan Repayment”

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  2. Loan repayment shouldn't be something that will cause public embarrassed or issue here. If a loan app is saying you are defaulting in payment then they are wrong because 7days repayment method is even a no go area by Google play store and CBN too. It's shouldn't be this bad. Please get your loan from bank that are registered because 90% loan app aren't registered

  3. Thanks for the enlightenment, please you can see that most of these loan app are not even on playstore again which confirm the information. If you need a loan, go to your bank

  4. Feel free to attend a Twitter seminar tonight on fccpc page on loan app operation and how to treat them if you have once their customer. The fccpc state that they will give lot of information on Twitter tonight by 7pm concerning this

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