Can I go to jail for debt in Nigeria?

Asked by: Mollie Blick  |  Last update: September 17, 2022
Score: 4.4/5 (46 votes)

There is no place in Nigeria, where owing debt is a crime. Even, owing and refusing to pay is not a crime. While this may be rude, immoral, sinful and uncivilised, it is not yet a crime in Nigeria. It is not criminal rather civil in nature and can only be taken to civil courts and other dispute resolution platforms.

Can I go to jail for not paying loan in Nigeria?

Unknown consequences. Failure to pay back a loan could result in court charges in Nigeria, but not much is known about this: and for good reasons. Loan defaulting is a civil matter and not a criminal offence, so you typically won't go to jail for defaulting on a loan.

Can a person be imprisoned because of debt?

No one can be imprisoned for non-payment of debt. The remedy of the creditor is civil in nature. Let's examine some laws that were questioned, albeit unsuccessfully, on the ground that these laws violate the constitutional prohibition against non-imprisonment for debt.

Is owing debt a crime?

You can't be arrested for debt just because you're behind on payments. No creditor of consumer debt — including credit cards, medical debt, a payday loan, mortgage or student loans — can force you to be arrested, jailed or put in any kind of court-ordered community service.

What happens if you dont pay Fairmoney?

Depending on your profile, the processing fee ranges from 3% to 15% (GST applies) We also charge a minimal late penalty fee (calculated as a % of the outstanding amount after the due date). This fee is only charged if you don't repay your loan on time and ranges from 0.2% to 0.8% per day.

Strategies For Debt Recovery In Nigeria

22 related questions found

Can credit bureau block my BVN?

As important as this number is, some citizens can run into trouble with theirs, either as a result of some of their actions or through no fault of theirs – their BVN can be blacklisted.

What happens if you ignore debt collectors?

Ignoring or avoiding the debt collector may cause the debt collector to use other methods to try to collect the debt, including a lawsuit against you. If you are unable to come to an agreement with a debt collector, you may want to contact an attorney who can provide you with legal advice about your situation.

What happens if debt is not paid?

Your Debt Will Go to a Collection Agency

In most cases, according to industry experts, it typically takes about 60 days before an unpaid debt is sent to a collections agency. This is probably obvious, but the debt collection agency has been hired by the company that's owed the money.

What is the punishment for not paying loan?

Personal loan defaulters will be acquitted under section 420 of the India Penal Code, i.e. Life Imprisonment. This will have a negative impact on the credit history and hamper the ability to apply for a personal loan in the future. The best option is to avert default payments by maintaining emergency funds.

Can loan apps block your BVN?

A loan app cannot 'BLOCK' your BVN, they can only prevent you from getting further loans from their platform or getting loans from other loan app.

What happens if you don't pay back a loan in Nigeria?

Aside from confiscating your collateral, your name will be blacklisted and sent to regulatory bodies like CBN and the Credit Bureau. You will no longer be able to take other loans or take on most government responsibilities. Your credit score will also plunge.

How long can they chase you for debt?

For most debts, the time limit is 6 years since you last wrote to them or made a payment. The time limit is longer for mortgage debts. If your home is repossessed and you still owe money on your mortgage, the time limit is 6 years for the interest on the mortgage and 12 years on the main amount.

What legal action can be taken if loan is not paid?

Breach of contract when it comes to loan repayment itself is not a crime but lenders can approach a civil court in order to recover the same. If a loan has not been repaid for more than 180 days, the lender is allowed to file a case against the borrower under Section 138 of the Negotiable Instruments Act of 1881.

Can I go to court for not paying personal loan?

Because in litigations banks will have to further expend money on the NPA. Use of Post Dated Cheques: But if the negotiations fail, the bank may decide to go to court. But as loan default is a civil dispute, arrest cannot be made.

How do you escape a debt collector?

9 Ways to Turn the Tables on Debt Collectors
  1. Don't Wait for Them to Call. Consider picking up the phone and calling the debt collector yourself. ...
  2. Check Them Out. ...
  3. Dump it Back in Their Lap. ...
  4. Stick to Business. ...
  5. Show Them the Money. ...
  6. Ask to Speak to a Supervisor. ...
  7. Call Their Bluff. ...
  8. Tell Them to Take a Hike.

Can a debt collector sue you?

If you have unpaid debts, at some point the creditor or debt collector might sue you. While not all creditors will file a debt collection lawsuit, if you have income or assets that the creditor can grab, it's likely to sue you to get a judgment. But if you get served with a debt collection lawsuit, don't panic.

What happens after 7 years of not paying debt?

Unpaid credit card debt will drop off an individual's credit report after 7 years, meaning late payments associated with the unpaid debt will no longer affect the person's credit score.

Can I tell a debt collector to stop calling?

Under the FDCPA, you can tell a debt collector to stop contacting you; but it's not always a good idea. The federal Fair Debt Collection Practices Act (FDCPA) gives you the right to force a debt collector to stop communicating with you.

Can debt collectors call your family?

Can Debt Collectors Call Friends and Family? Debt collectors are legally allowed to call your friends or family to try to locate you. But they cannot call these people to try to collect the payment for the debt, and they are only allowed to call once unless they believe there may be new information to be found.

What is the 11 word phrase to stop debt collectors?

If you need to take a break, you can use this 11 word phrase to stop debt collectors: “Please cease and desist all calls and contact with me, immediately.” Here is what you should do if you are being contacted by a debt collector.

Can I check if I am Blacklisted?

To find out if you are blacklisted on one or all these credit bureaus you need to obtain your credit record from each credit bureau or you can simply click on the button below to check your Credit Reports.

How do I stop loan apps from calling my contact?

To stop loan apps from accessing your phone contacts or calling your contacts and family members, do the following: Don't download any loan app on your phone. If you have already downloaded a loan app, don't approve or collect any loan from the platform.

How do I stop loan company calls in Nigeria?

To do this, simply scroll down to app permission and stop loan apps from accessing your contacts, sms, photo gallery and storages on your phone, they won't be able to reach out to your contacts anymore or post your pictures. They would only have your number and have only you to deal with.

Is personal loan default a criminal Offence?

As per the RBI guidelines for personal loan defaulters, you can be charged as a criminal if your cheques bounce, as stated under section 138 of the Negotiable Instruments Act of 1881.

Can debt collectors follow you to another country?

A judgment can allow a creditor to file a lien against your property or garnish your accounts, for example. While they can't keep you from leaving the state or country, the creditors can keep you from taking some of your assets with you.