A loan app has sparked widespread outrage after it publicly shared the photos and personal details of 87 individuals alleged to be defaulting on their loans. The photos, accompanied by accusations of fraud and debt evasion, were posted online, prompting backlash from both the affected individuals and the general public. The action has raised serious concerns about privacy violations and unethical practices in Nigeria’s growing digital lending industry.
Many of the individuals whose photos were shared online claim they were not given adequate notice or reminders before their information was made public. Some borrowers have also accused the loan app of inflating their debt and failing to provide proper documentation. The victims have called on relevant authorities to take action against the company, stating that the public shaming has caused them significant emotional distress and reputational damage.
Consumer rights organizations and legal experts have condemned the loan app’s actions, describing it as a breach of privacy laws and a violation of human dignity. They argue that while lenders have the right to recover debts, they must do so through legal and ethical means. The public disclosure of debtors’ photos is seen as a form of cyberbullying and harassment, which could lead to lawsuits against the company.
In response to the backlash, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has reiterated its commitment to regulating digital lenders and protecting consumers. The commission has warned loan apps to adhere to ethical debt recovery practices or face penalties. The FCCPC has also been actively investigating loan apps that engage in illegal practices such as unauthorized access to borrowers’ contacts and public shaming.
This incident has reignited discussions about the regulation of Nigeria’s fast-growing fintech sector, particularly the need to address predatory lending practices. Experts have called for stricter licensing requirements and enforcement of data protection laws to curb the unethical behavior of some digital lenders. They also emphasize the importance of educating borrowers on their rights and encouraging them to report abusive practices by loan apps.
