How To Stop Loan Apps From Accessing Your Contacts

The increase in the availability of loan apps in Nigeria has relieved many Nigerians who need access to ready loans at one point or the other. The lack of need for guarantors, documentation, collateral, and even physical contact with these loan organizations makes them even more accessible and welcoming.

However, many loan app users don’t know that many apps require permission to access your contacts, which invariably become your guarantors. Many loan apps use this access to users’ contacts as collateral in case of the inability of a user to repay the loan. On failure to repay loans, the loan apps may call or text the user’s contacts to warn or harass them.

How To Stop Loan Apps From Accessing Your Contacts

1. It is unsure if these loan apps will grant loans if the user does not grant access to their contacts and gallery, but you can prevent further infringement of your details by:

  • Navigate to Settings on your mobile device.
  • Scroll to your app permissions.
  • Disable the loan app’s permissions.

2. Another way to stop loan apps from reaching out to your contacts is by emptying your SIM card or uninstalling the loan app after you must have taken the loan till it is time for you to repay.

Consequences Of Not Paying Up Your Loan

A loan default occurs when a borrower misses the payment of a loan. A loan default can occur due to a variety of reasons. A borrower may default on a loan because:

  • The user is not financially able to pay up the loan.
  • The user deliberately does not pay up the loan on the due date.
  • The user was unaware of the loan.
  • The user forgot about the loan.

The consequences of not paying your loan vary depending on the loan type and the creditor. Some consequences include:

  • You may receive warning messages to pay up or risk an overcharge on your due date.
  • You may be charged late fees daily till you pay up your loan in addition to your interest.
  • Your BVN may be shared with financial authorities and blocklisted from taking other loans.
  • You may be tracked and traced with the personal details associated with your bank account.
  • A warning message may be sent to your contacts informing them about your loan and defaming you.
  • Your photos might be distributed with false messages to harass you.
  • Your credit score or creditworthiness will be affected.

What To Do When You Can’t Repay Your Loan

The consequences of not paying up your loan are more often than not dire. If you already know in advance that you will be unable to pay up your loan by the due date, you must take measures to prevent the grave consequence of defaulting on your loan. Some of the steps you can take if you are unable to repay your loan include:

1. Communicate with the loan app or lender: Communication is very important in all we do. If you cannot pay your loan, you can contact support and speak to a representative or lender directly to discuss your options. Explain why you can’t pay back your loan and work together with them to conclude on a suitable option. Some of the possible options your lender or support may give you are:

  • Extend your repayment date: Customer support can help you extend your loan duration for a little longer till you can repay your loan. This option may come with added interest and a late fee charge.
  • Freeze your interest: This can only happen if you communicate directly with a lender. As lenders are different and handle their loan platforms differently, some may be more lenient than others. If you tender your case in a way the lender understands, you may be given the option to have your interests frozen while you try to pay back your loan.

2. Payback late: Better late than never, they say. If you can’t repay your loan by the due date, endeavor to pay it back as soon as possible. Do not wait for it to be too late. It is better to be slightly late than to be very late.

It is poor conduct and illegal for loan apps to infiltrate your contacts to threaten or defame borrowers due to a loan default. While we have discussed ways that you may narrowly escape this, borrowers must try to avoid defaulting on their loans at all costs. This is not to encourage loan app users to refuse to repay their loans but to help avoid harassment.

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