In a country with high economic turmoil, lenders often ask if borrowers can escape repaying loans because, if they had the money in the first place, they wouldn’t have gone to a loan app for money, right? Wrong.
You see, I understand what you mean, and the reasoning might sound fair and sleek, but the truth is, life itself is not fair, and so, all actions have equal and opposite reactions.
Therefore, in today’s guide, we will find out what happens if you don’t pay your Fairmoney loan. Please note that this guide also applies to other loan apps. Let’s jump in.
Is it a good practice to Collect Loans and not want to pay back?
You see, two of the popular questions people ask us are, why has a particular loan app rejected my request for a loan, and how can I increase my loan limit?
The former addresses our topic today, which is “what happens if I don’t pay my loan on time”, and the latter addresses how to get loans over and over again.
The big question is, is it a good practice to collect loans and not want to pay back? The short answer is no. Why?
There are many reasons, and the most important one is that loan apps are in business to make profits, and they wouldn’t want to go bankrupt because of you, or because the Nigerian economy is hard.
Two, no one wants the stress of going to court and spending money just to serve a customer a court order. It is not good PR for the company.
Three, every loan app is subject to scrutiny from the CBN based on profits and losses, and they will do everything in their power to avoid such.
Four, because business is hard, and so, they wouldn’t want you to take a loan and not want to pay it back.
Having seen some reasons why you shouldn’t lend money and not want to pay back, let’s now focus on FairMoney, and answer the questions “what happens if I don’t pay my FairMoney loan on time, or can you go to jail for not paying back loans?
9 Things that Will Happen If You Don’t Pay Fairmoney Loan Back on Time
Bad Credit Score
Your FairMoney credit score will tank, which limits the ability to get multiple loans from the app/company.
Penalty Fee
If your repayment is delayed, there will be an overdue interest on the amount you collected; hence, a penalty fee will be charged in accordance with the regulatory guidelines of the Central Bank of Nigeria. The longer the delay, the higher the accrued interest rates and penalty fees.
Multiple Calls, Emails, and SMS
Your phone will be bombarded with incessant calls, sms and emails from FairMoney, either threatening, soliciting, or asking you to repay the loans you took. (Trust me, you don’t want to be in such a situation.
Blacklisted BVN & Cross Border Limits
Not just blacklisting your BVN on the FairMoney database for loans and other financial services, the blacklisting cuts across other loan apps, as your profile will be marked as bad or dangerous.
Loan Amount Limitation
Unfortunately, you cannot request a higher amount of money. I mean, who will entrust you with more when you were not diligent with a little?
Physical Confrontation
FairMoney might send their team – loan recovery unit, to confront you physically.
Court Order
If the above proves abortive, then they will serve you a court order. Your legal battle starts officially.
Bank Account Freezing
After being served a court order, your bank account will be frozen if they can’t recover their money from your other bank accounts.
Reported to Credit Bureau
The Credit Bureau of Nigeria is the body responsible for financial decisions with accurate credit reports and real-time credit monitoring of individuals and institutions, and as a lender, you don’t want your profile to be reported, as it can limit all other financial activities.
This step is the highest if FairMoney has done everything possible to get their money back, and you don’t give in.
Will Your FairMoney Account Be Closed if you FAIL to Pay Back Loans?
There will be a suspension of your FairMoney account while the legal battle continues to receive their money.
Can You Go to Jail for Not Paying Loans?
Yes, you can, if there is a law that backs jailing loan defaulters. I recommend you read the terms of service of any loan app company to avoid surprises.
Can Your Japa Journey FAIL for Not Paying Loans?
If you are served a court order, and it gets to the police, then when you are ready for a security screening test, they might catch you, which will affect your Japa journey. So, yes, it is 50/50.
But the big question is, why not pay back the loan if you can?
Benefits of Paying Back Your FairMoney Loan on Time
- You get higher loan limits.
- Lower interest rates.
- No penalty fees.
- No battling with federal agents.
- No legal or court battle.
- Good credit score and profile.
How do I repay my FairMoney Loan?
You have two options to make the repayments. Option 1 is to make use of the Debit card connected to the app and make the payment. And Option 2 is to make the transfer to your FairMoney Bank.
Alternatively, you can transfer from another bank or loan app to FairMoney.
Wondering how to get a loan for the first time on Opay? Here are the beginner steps.
The bottom line
It is important to be cautious when borrowing loans.
Never borrow an amount you cannot pay back, and even if you cannot pay back on time, you can apply for an extension period to enable you to pay back the loan because, overall, not paying back your loan is a loss to both the loan company and you, if legal steps are taken.
