By RARZACK OLAEGBE
A loan is not permission to access the contacts on your phone.
A friend told a story about an anonymous caller who wanted her to persuade a distant cousin to repay her loan. For a second, she wondered how that was her business. The caller could not answer the question. Already, the anonymous caller had violated the borrower’s privacy. But did she know? Many innocent Nigerians had received the same anonymous calls about a relative, a friend, a schoolmate, or a former colleague who borrowed from an app loan. For those who received the call, it left a bad taste. However, for the borrower, it was simply an invasion of privacy, a deliberate attempt to shame the borrower.
On the one hand
A reprieve has come. Millions of Nigerians who use digital loan apps now have stronger protection. The Federal High Court in Lagos had delivered a landmark judgment, stopping owners of app loans from contact-shaming the borrowers. The court dismissed a suit filed by the Wireless Application Service Providers Association of Nigeria.
On the other hand
The court did not rule that the borrower should not repay a loan. A borrower must repay lawful loans and agreed interest. What the judgment has done is to protect the consumers from abusive practices. One of these practices is the invasion of a borrower’s privacy by calling the phone number or sending reproachful messages to contacts without the borrower’s permission or knowledge.
In the long term
What the judgment also did is this. It restored the Federal Competition and Consumer Protection Commission’s (FCCPC) powers to enforce the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Regulations 2025). The regulations say the digital lenders must respect the privacy of a borrower. Disclose charges clearly. Respect the dignity of the borrowers. No contact shaming. No defamatory messages. No embarrassing messages to your family. Friends. Employer. Besides, all the charges must be transparent. As such, all illegal loan apps face removal from the App Stores.
The DEON is the best deal to protect the consumers’ privacy. With this judgment, the borrowers have a clear channel for complaints. This is the interesting part. A victim of harassment or illegal recovery practices must report offending lenders directly to the FCCPC. You can send screenshots, voice recordings, and other evidence to support the investigation.
KYC is a popular acronym. Not many borrowers are familiar with KYR. Know Your Rights. To know your rights, you must familiarise yourself with the rights and protections listed in the DEON regulations. This is the only way you will understand that accessing a loan is not a prison term. It is a business. It is not a permission to access the contacts on your phone. Because you applied for a loan does not give the loan app permission to invade the privacy of your data. Getting a loan is not a permission to call a family meeting on your behalf.
Besides, a borrower must report the issue. If you have a dirty experience with a digital lender, either a data breach or unethical practice, you must report to EFCC, sorry FCCPC. That is the only way you, as a borrower, can extract the best from the DEON deal.
In the short term
The DEON Regulations 2025 provide a structured framework for ethical, transparent, and accountable digital lending in Nigeria, balancing financial innovation with consumer protection, while their current enforcement is subject to ongoing judicial review.
Fun fact
Loans are ways to finance big purchases or manage expenses. Loans come in many forms. Each has its own rules and benefits. No contact shaming.
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