can Loan Apps Sue You or Block Your BVN? Check Below to See All You Should Know.
Loan apps have been helping people solve their financial problems for ages now. Recently, we noticed some illegal and fraudulent loan apps, which we normally refer to as loan sharks. If you’re among those who borrow money from these online loan companies, check below to see what they can do if you refuse to pay back the money as agreed between you and the company.
Can Loan Apps Sue You for Not Paying Back Your Loan?
The action taken by loan apps towards their users depends on the kind of loan company you are dealing with. Also, your responses to their customer care agents will determine the action they will take towards you. Legally, a fully government-registered loan app can sue you in court for not paying back the money you borrowed from them. Before such loan apps take this action, they might have noticed fraudulent activities in your records. How you respond to the loan apps will determine their next move. If you keep giving them hope that you will pay back the loan, they will not report you or sue you to court. However, if you behave fraudulently, they can report you to the court for running away with their money or trying to scam them.
Note: The case will not be a criminal case or any form of case that may lead you to jail. Your court case with a loan company over the inability to pay back your loan is a civil case which cannot lead you to jail, although you may spend a lot of money in the law court trying to solve this issue. It is important to pay back your loan once you get the money because the interest keeps adding up. You must pay your loan back if you’re dealing with a verified loan app, though they will not disrupt your life like loan sharks.
On the other hand, loan sharks cannot sue you to court due to the fact that they don’t work in accordance with Google or legal policy. In summary, loan apps can sue you in court for not paying back your loan only when they notice that you are planning not to pay back the loan again. The more the money stays with you, the more they make money from you because the interest rate will be generating money for them daily.
Can Loan Apps Block or Blacklist Your BVN?
One of the messages loan sharks normally send to their users is that they will block their BVN or blacklist it. Loan apps cannot block your BVN, but they can blacklist it. What I mean here is, loan apps can blacklist your BVN and stop you from borrowing money from them or from other loan companies or banks.
The important thing to know here is that the loan app that can blacklist your BVN are those that work in accordance with government policy or those who maintain FCCPC act. Normally, loan companies will be happy if you couldn’t pay back your loan on time because the longer you keep owing them without paying back your loan, the more money they make from you through the interest rate attached to the loan. Before a loan app blacklists your BVN, they will make sure that you have an intention of running away with their money.
Below are what legitimate loan apps do whenever they notice that they are dealing with a fake or fraudulent client:
- Legitimate loan apps can sue you in court for planning to run away with their money.
- Legitimate loan apps can blacklist your BVN to stop you from borrowing money from other loan companies or banks.
- They will also stop you from proceeding with your visa application as a fraudulent record will show up on the data recorded on your BVN.
- Loan companies may prevent you from getting a job.
It is not advisable to keep a loan for a long time as the interest rate will make it too much for you to pay back