I borrowed N9.6m from moniepoint to strengthen my business, I had taken a first loan from them for six months, and their agents encouraged me to liquidate at four months, so I could qualify for N35m to lease a new outlet. After a most stressful 4 months, I only got N9.6m, I had to first pay back the loan to liquidate early, and after making the first payment, I was already in trouble. As at today, I have completed payment for five months, and paid about N250,000 from the sixth ( the last ) month. I have paid close to N11m, and still have about N1.6m to pay. The business which was doing fine before the loans has shut down, I have not earned N1,000 since February, I have borrowed from everyone I could, sold off for cheap my wife’s bakery equipments to pay up, and can hardly feed now.
I have asked for time to pay up, but moniepoint decided to embarrass me at the only place where I still have some dignity. They discovered I was a pastor ( part time, I don’t get paid ), and after lots of threats, they finally traced me to church, and last Sunday, when I was not around went to the church, met my junior pastor, and reported to him threatening to come arrest me in church the next time.
What should I do?
To be honest, you are legally bound to repay the loan you took from Moniepoint; however, the circumstances around the refinancing and repayment especially where you’ve paid over N11 million on a N9.6 million loan and still owe N1.6 million raise serious concerns about potentially excessive interest or unfair lending practices. Nigerian Money Lending Laws, as well as regulations by the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC), require lenders to operate transparently and fairly. If the loan terms were misleading or exploitative, you may have grounds to file a formal complaint. More critically, Moniepoint’s actions i.e going to your church, threatening arrest, and trying to embarrass you publicly are illegal. Under Nigerian law, loan default is a civil matter, not a criminal one. Only a court can enforce debt repayment, and any form of harassment, defamation, or intimidation (especially in a religious setting) violates your constitutional right to dignity and may amount to criminal conduct on their part. No lender has the legal authority to arrest you without a court judgment or warrant.
To protect yourself, you should immediately stop verbal communication with Moniepoint and request all future interactions in writing. File a formal complaint with both the CBN and FCCPC detailing the harassment and request for debt restructuring or a payment moratorium. You should also seek legal assistance either through a private lawyer or office of the public defender to help defend your rights and potentially obtain a court order to stop further harassment.