In Nigeria, the lending market has seen a rise in the popularity of loan apps that call your contacts. These apps offer a simple and fast way to apply for loans using your mobile device. However, there are risks associated with these apps that you should be aware of. Before you proceed, it’s crucial to carefully read the loan terms and conditions as interest rates can be quite high, and the practice of contacting your contacts may be seen as an invasion of privacy. Let’s take a closer look at these loan apps and how you can protect yourself.
List of Loan Apps that Call Your Contacts:
- QuickNaira
- CashLion
- NaijaCash
- MoneyPlus
- LoanBee
- PayDay Loan
- InstantCash
- CreditDirect
- FlashCredit
- PalmCredit
- EasyMoney
- LoanPal
- CashBus
- CreditHub
- FastLoan
- MoneyGo
- CashFlow
- SkyLoan
- SmartLoan
- QuickCredit
- PesaZone
- LoanMaster
- MoneyTree
- RapidCash
- EazyLoan
How Loan Apps Access Your Contacts:
Upon installing certain loan apps, you’ll be asked to grant access to your contact list. If you click “Allow,” the lending companies may access all your contacts. Although this may raise privacy concerns, many loan apps include this in their terms and conditions. Therefore, it’s essential to read the privacy policy and terms of service before granting access.
Reasons for Requesting Access to Your Contacts:
There are several reasons why loan apps request access to your contacts:
- Identity Verification: Accessing your contacts helps the app verify your identity and the accuracy of the provided contact information.
- Connecting with Other Lenders: Some apps may connect you with other lenders, and to do this, they require access to your contacts.
- Assessing Creditworthiness: Information from your contacts might be used to evaluate your creditworthiness and determine the loan amount you qualify for.
How Loan Apps Use Your Contacts:
Loan apps may call your contacts for various reasons:
- Identity Verification: They may contact your contacts to ensure your identity is genuine.
- Reporting Loan Violations: Loan apps might reach out to your contacts if there are violations in loan terms.
- Promotion: Some apps may try to promote their lending services to your friends and family members.
- Guarantor Requirement: If a guarantor is needed for the loan, they may contact your contacts to ask for their support.
How to Prevent Loan Apps from Calling Your Contacts:
To stop a loan app from calling your contacts, you can follow these steps:
- Deny Access: Access your device settings, find the app, and deny its access to your contacts.
- Uninstall: If you no longer wish to use the app, uninstall it from your device.
- Block Numbers: If you receive unwanted calls, block the phone numbers through your phone settings.
- Report to Authorities: If the app contacts you or your contacts without consent, report it to the authorities.
Preventing Loan Apps from Sending Messages to Your Contacts:
To prevent a loan app from sending messages to your contacts:
- Revoke Access: Go to your device settings, locate the app, and revoke its access to your contacts.
- Uninstall: If you don’t want to use the app anymore, uninstall it.
- Block Numbers: If you receive unwanted messages, block the phone numbers through your phone settings.
- Check Permission Settings: You can revoke the app’s permission to access your messaging service through app settings.
FAQs
Why do these loan apps call your contacts?
These loan apps often call your contacts as a form of pressure or guarantee when you default on a loan. They use the contact information provided during the application process, claiming it helps them recover debts more effectively.
Is it legal for loan apps to call my contacts?
The legality of this practice varies. In Nigeria, there are growing concerns and calls for regulation, but currently, many apps include this clause in their terms and conditions. Always read these carefully before accepting a loan.
How can I protect my privacy while using loan apps?
To protect your privacy, select loan apps that have transparent privacy policies and do not engage in invasive debt collection practices. Additionally, always limit the personal information you share and understand the terms and conditions completely.
What should I do if a loan app harasses me or my contacts?
If you or your contacts are harassed by a loan app, you can report them to the National Information Technology Development Agency (NITDA) or other relevant authorities in Nigeria. Keeping a record of all communications can also be helpful in such situations.
Are there alternative financing options without these invasive practices?
Yes, consider banks, microfinance institutions, or cooperative societies that typically have more stringent regulations and respectful collection practices. Additionally, some new fintech solutions offer loans without invasive collection tactics.
What are the consequences of not paying back a loan on these apps?
Defaulting on a loan can lead to aggressive collection tactics, damage to your credit score, and legal action. Moreover, the reputational risk due to contact outreach can strain personal relationships.
Can I block a loan app from accessing my contacts?
Once permission is granted, it can be difficult to revoke it entirely without uninstalling the app. Be cautious about granting such permissions and review app settings and permissions regularly.
How can I safely use a loan app?
Ensure to use loan apps responsibly by borrowing only what you can afford to pay back, understanding all the terms and conditions, maintaining good communication with the lender, and managing your finances to avoid defaults.
Conclusion:
Loan apps that call your contacts in Nigeria offer quick cash but come with risks. Be cautious when granting access to your contacts, as your personal and financial information might be shared with third parties. Defaulting on the loan may lead to your contacts being contacted for payment.
