The Nigerian Consumer Credit Corporation (CREDICORP), led by Managing Director and Chief Executive Officer, Engr. Uzoma Nwagba, issued a firm warning to lenders against harassing, threatening or humiliating borrowers during debt recovery, stressing that failure to repay a loan does not strip consumers of their legal rights or dignity.

CREDICORP said lenders must pursue outstanding debts through lawful and respectful channels, warning specifically against threats, abusive language, contacting borrowers’ relatives or employers, and publicly shaming debtors on WhatsApp or social media.

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“Falling behind on a loan does not give any lender the right to harass you,” the corporation said, adding that debt recovery should involve “no threats, no abuse, no calls to your family or employer, and no public shaming on WhatsApp or social media.”

The intervention places renewed attention on the delicate balance between a lender’s legitimate right to recover money and a borrower’s right to privacy, dignity and fair treatment.

CREDICORP stressed that being indebted is not, in itself, a criminal offence.

The corporation urged borrowers who experience abusive recovery practices to preserve evidence of the conduct and report suspected violations to the Federal Competition and Consumer Protection Commission (FCCPC) or the Central Bank of Nigeria.

The warning is consistent with Nigeria’s broader regulatory effort to curb aggressive practices in the lending industry.

The FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 were introduced to address complaints involving harassment, privacy violations, exploitative practices and abusive recovery methods in the digital lending market.

The FCCPC has previously documented cases in which some digital lenders contacted third parties connected to borrowers and used abusive or coercive language during collection efforts.

In 2022, the Commission directed lenders under investigation to stop contacting people on borrowers’ contact lists and discontinue inappropriate communication with defaulters.

The regulatory position has since become more formal.

The 2025 DEON framework requires digital lenders to operate transparently, respect data-protection obligations and adopt fair treatment standards.

The FCCPC also set January 5, 2026, as the deadline for lenders to comply fully with the regulations before enforcement measures began against operators that failed to regularise their status.

FCCPC Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello, previously drew a clear line between financial innovation and consumer abuse, saying, “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”

The Central Bank of Nigeria has also maintained that debt collection should be courteous and fair, with financial institutions expected to respect consumers’ privacy and adopt ethical recovery practices when customers are unable to meet their obligations.

For CREDICORP, the latest warning also fits into its wider mandate of promoting responsible consumer credit.

The Federal Government established the corporation as a development finance institution to expand access to credit for Nigeria’s working population while building a stronger and more trusted consumer credit system.

CREDICORP’s approach is not to discourage responsible repayment.

Rather, the corporation’s message seeks to reinforce the principle that borrowers remain accountable for legitimate debts while lenders remain accountable for the methods used to recover them.

That distinction is increasingly important as digital lending continues to expand.

The FCCPC has warned consumers to use approved lenders and has maintained that legitimate recovery rights do not extend to intrusive access to private information or humiliating treatment of borrowers.

CREDICORP has also previously advised Nigerians to look beyond advertised interest rates before accepting a loan, urging prospective borrowers to consider the total cost of credit, repayment terms and the purpose for which the money will be used.

The corporation’s latest position therefore carries a dual message: borrowers should take their repayment obligations seriously, while lenders must exercise restraint and professionalism when enforcing those obligations.

CREDICORP clarified that the latest guidance was issued for informational purposes and should not be interpreted as legal advice or formal policy guidance.

For borrowers facing aggressive collection practices, however, the message is significant.

A missed repayment may create a financial obligation, but it does not erase the consumer’s right to be treated with dignity.

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CREDICORP’s broader challenge to lenders is clear: recover what is legitimately owed, but do so without turning financial difficulty into public humiliation.