Debt: loans apps and their malicious intent
New forms of exploitation in this country called Nigeria are blossoming like a diabetic wound on a body. I write of this audaciously so-called “loan apps” – these predatory entities that dangle the illusion of financial services before the faces of the lumpen proletariat, only to ensnare them in webs of debt, extortion, and psychological torment.
These loan sharks are not innovators, nor are they benevolent benefactors. They are parasites, feeding on inflation and desperation created by a capitalist system that deliberately keeps the vast majority of people in a state of economic bondage. they are symptoms of a sickness, profiting from the failures of this third world state.
Their trap are set with deceptive ease, mouth watering ads flood social media, promising instant access to cash with minimal requirements. desperate individuals, facing different economical instabilities, unemployment, or the sheer struggle to survive in an economy rigged against them, succumb to the allure of quick relief. they download the app, provide their personal information which they sell to data broker for quick gains, and within minutes, a loan is approved after being through the horrifying pipeline of the loan apps trying as much as possible to extract each and every single data on your device from your contacts, your pictures, your bank details etc. this information is then used for predatory purposes, including relentless harassment and public shaming of borrowers and their contacts.
But what awaits them behind the veneer of convenience is a labyrinth of exploitation hidden within the “Terms and Conditions” – a document few have the time, resources, or legal expertise to fully understand. These T&Cs, often written in deliberately convoluted language, grant the loan apps sweeping powers over the borrower.
Far beyond anything considered ethical, these loan apps impose interest rates that would make the most hardened capitalist blush. daily interest accrual leads to astronomical sums, quickly turning a small loan into an insurmountable debt, buried within the fine print are a dizzying array of “service fees,” “processing fees,” and other arbitrary charges that further inflate the cost of the loan. these fees are often applied without warning, leaving borrowers blindsided and further in the red.
The T&Cs often reserve the right for the loan app to unilaterally change the terms of the loan, including increasing interest rates or shortening repayment periods. this leaves borrowers utterly at the mercy of these scums, they often demand that borrowers waive their rights to privacy, legal recourse, and fair debt collection practices, effectively leaving them defenseless against exploitation. when borrowers inevitably struggle to meet the impossible repayment demands, they unleash their most brutal weapons: blackmail and harassment. This is where the true nature of these entities is revealed – not as providers of financial assistance, but as instruments of psychological torture and emotional trauma, they access the borrower’s contact list and send messages to their friends, family, and colleagues, falsely accusing them of being a debtor and threatening to publicly shame them unless the loan is repaid. This tactic preys on the fear of social stigma and uses shame as a weapon of control, borrowers' photos are often stolen from their social media accounts and manipulated to create defamatory images, falsely implying they are criminals, sex workers, or otherwise engaged in scandalous activities. these images are then circulated to the borrower's contacts, causing immense disgrace and trauma to the borrower. borrowers are bombarded with incessant calls, texts, and emails, demanding immediate repayment and threatening further action.
As if the initial debt and the accompanying harassment weren't enough, they also engage in the insidious practice of unilaterally adding more money to the existing loan. This can happen without the borrower's consent or even knowledge, further compounding their debt and making it virtually impossible to escape the cycle of exploitation.
This practice is a deliberate strategy to keep borrowers trapped in perpetual debt. The added funds are often accompanied by even higher interest rates and shorter repayment periods, making it even more difficult for borrowers to meet their obligations. It's a classic loan-shark tactic, designed to bleed borrowers dry.
This predatory lending ecosystem thrives because of a number of systemic factors: one is that the vast majority of nigerians live below the economic cycle, lacking access to formal financial services and credit. secondly the nigerian government has been slow to regulate the loan app industry, allowing these entities to operate with impunity, security and privacy is joke in this country. existing regulations are often poorly enforced, providing little protection for borrowers, thirdly the existence of these loan apps is a symptom of a capitalist system that prioritizes profit above all else, even at the expense of human dignity and well-being. These apps are simply following the logic of capital, seeking to maximize profits by exploiting the vulnerability of the poor.
We cannot stand idly by while people are subjected to this kind of exploitation. we must organize and fight back against these parasitic loan apps and the system that enables them.