Loan app harassment and fake debt collectors: threatening calls about a debt

Loan app harassment and fake debt collectors: threatening calls about a debt

The phone rings again: "You are owing ₦85,000 on your loan. Pay today or we will send your picture to all your contacts as a fraudster." Or: "This is the recovery department. A warrant will be issued for your arrest by 5pm." Some of these calls come from fake collectors chasing debts that do not exist; others come from real loan apps using illegal harassment to collect. In both cases you have options. The rule: do not pay under pressure on the phone; verify the debt in writing, and report threats and shaming to the regulators.

How does the fake debt collector scam work?

• The invented debt. They claim you owe a quick loan, a "BNPL" instalment or a debt "bought" from another company, which you never took.
• A real debt, but someone else's or already paid. They use leaked data (name, phone number, BVN, the name of an app you once installed) to make it believable.
• Fake legal threats. A "court case", a "warrant", "the police will come today", "your BVN will be blacklisted". Only paying now will "close the file".
• Pressure on your circle. They call or message your relatives, colleagues or employer, sometimes calling you a thief or fraudster in WhatsApp broadcasts.

Many people in Nigeria have experienced the last tactic from genuine loan apps that copied their phone contacts. That practice is exactly what regulators have been acting against.

How do I recognise a fake or abusive collector?

1. They cannot give you the basics in writing: the lender's registered name, the loan date, the amount borrowed, interest and charges, and the account that belongs to the lender.
2. They threaten arrest or prison. Not repaying a loan is generally a civil matter, and the police do not call people to collect debts for lenders.
3. They demand payment immediately, often into a personal account or a different account each time.
4. They insult, threaten or shame you, or contact people in your phonebook. That is not a legitimate collection practice.
5. The lender is not on the regulator's list. The FCCPC publishes the digital money lenders it has approved. An app that is not listed is a red flag.
6. The number is hidden or changes with every call.

What are my rights?

• To have the debt explained in writing, with the lender identified and the amount detailed.
• To pay nothing until you have verified it.
• Not to be harassed, threatened or shamed, and not to have your supposed debt disclosed to your contacts. The FCCPC's Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (the DEON Regulations) are aimed at curbing unfair and exploitative practices by digital lenders; the FCCPC has announced that they are fully operational again.
• To have your personal data processed lawfully. Misusing your contacts or photos can be raised with the Nigeria Data Protection Commission (NDPC).

What do I do right now if they call?

1. Do not pay anything during the call, not "part payment to stop the case".
2. Do not confirm details: no BVN, NIN, address or bank information, and do not acknowledge the debt verbally.
3. Write everything down: number, date, time, the company name, the amount, what they said. Screenshot texts and WhatsApp messages.
4. Verify yourself. Check your loan apps and bank statements. Look up the lender's official contacts yourself and ask for a written statement of account.
5. Check whether the lender is approved on the FCCPC's list.
6. Warn your family and workplace if they threatened to contact them: once they know, the pressure loses its force.
7. Block the number once you have recorded the information.

What if I've already paid or given my details?

• Call your bank on its official number, explain you were defrauded and ask them to try to recall the payment and flag the receiving account.
• If you gave card details or a PIN, block the card and change your banking passwords.
• If you gave your BVN or NIN, watch for loans or accounts opened in your name.
• Do not pay a second time. Fake collectors come back with "interest" or "a new balance".
• Be wary of "recovery agents" who offer to get your money back for a fee.

Where do I report it?

1. The Federal Competition and Consumer Protection Commission (FCCPC), for harassment, shaming or unfair practices by a lender or collector.
2. The Nigeria Data Protection Commission (NDPC), if your contacts or personal data were misused.
3. The police, at a station or through the Nigeria Police Force's National Cybercrime Centre (NPF-NCCC) e-reporting portal, for threats, extortion or a fake debt. Bring screenshots, numbers and receipts.
4. The Economic and Financial Crimes Commission (EFCC), if you lost money to a fake collector.
5. NoCall, reporting the number in the spam numbers directory.

Frequently asked questions

They told me my full name and BVN. Doesn't that prove it's real? No. Personal data circulates in leaks and between apps. It proves they have your data, not that you owe them.

Can the police come to my home over a loan? Debt collection is not the police's job. Threats of arrest over an unpaid loan are a pressure tactic.

What if I really do owe the money? Ask for a written statement, negotiate a payment plan through the lender's official channel and pay only into the lender's own account. Owing money does not give anyone the right to harass or shame you.

They keep calling from new numbers. What do I do? Keep a log, block each number, report them to the FCCPC and on NoCall, and include the log in any police report.

In short

A caller demanding money with threats, shame or "warrants" is either a fake collector or an abusive one. Do not pay on the phone, verify in writing, check the FCCPC list of approved lenders and report harassment to the FCCPC, the NDPC and the police. And report the number in the NoCall spam numbers directory.