In this concluding part on the write-up by VICTOR AYENI on online lenders, agents of the firms defend their tactics and health experts warn of the implications
They have different categories that borrowers fall into. Those whose loans have not yet due fall into Q zero; they call them, encourage them to pay and promise them false benefits if they pay before the due date. The Q one are borrowers we call on the very day their loans are due. Those in Q two and three are those whose loans are few days or a week due. The Q four are loans that are 30 days and above due. These Q four are the ones who get harassed because their interests would have accumulated and the tone from agents towards them are usually harsh. That is when they call or message their contacts.
“Additionally, some people being recruited as loan collection officers do not really have much emotional intelligence or understand what their job really entails. They just wanted the job. During the training session, we had when we were recruited, our instructor told us to use whatever tactic we knew to make customers pay them back because Nigerians are difficult people.”
Erabor also lamented the poor working conditions these loan companies subject their agents to and the unpalatable responses of some borrowers.
“The working conditions are also poor. The first time I went for the interview at this loan company, I observed that most of their staff were visibly frustrated; you are not well paid. You can be sacked at any time for not retrieving loans and some defaulters too are annoying. Some will stop talking once they know your purpose for calling or shout on us or deny their identities and it is my personal airtime I use for all these calls,” she added.
A software engineer simply identified as Goddy, who works with a tech firm partnering online loan outfits, explained to our correspondent how the process worked.
“We have many online loan companies that work with our company, such as Aladdin, Migo, CashPal, Branch International, Blackcopper, Lendsqr, Indicina, Pond colony, Kuick Pay credit, Borrow Me, Carbon, First Credit and Fair Money.
“We have an already existing automated system that enables us to collect these loans. However, all these companies are bound by the same ethical code or laid down rules, one of which says, ‘defaulters are not criminals.’ We also use a specific Application Programming Interface to track if a prospective customer is already owing any of the loan apps through their BVN which will show us all their bank accounts and transactions.
“Unlike those loan sharks that harass and insult defaulters, or even threaten them with arrests, we have agents who are assigned to call each respective company partner we have, and then they will send us a portfolio of all their customers who have collected loans from them and we assess the amounts loaned to each and note the default date. Our agents then call the defaulters and remind them of their loans and extend to them a refunding pattern that may extend to two weeks or two months at most. The purpose is to make the people commit to payment,” he explained.
When our correspondent contacted the agent whose phone number was displayed with a threatening message from LCredit, she denied sending it.
“We don’t send messages to customers unless their payment expires and some customers prove to be too stubborn and I do not think I sent anything along that line,” she stated.
Our correspondent also reached out to 9Credit, and a call agent who gave her name as Precious admitted that this is part of their policy towards those who refuse to pay up.
“I am sure that this is not actually the first time that the person received this message from the company. It is part of the policy which he or she knows about. Before we send that message, we first send several messages days before, advising the person to make payment, not in a rude way. I am sure we must have called the person once or twice before we call their emergency contacts.
“That is why such harsh messages are sent to them because the person is acting like he or she does not want to make the payment within the seven days agreement,” she added.
Loan sharks’ tactics can cause physical, mental disorders, experts warn
A mental health expert at the Federal Neuropsychiatric Hospital, Calabar, Dr Victor Essien, noted that the unprofessional methods deployed by loan sharks could lead their customers into mental health issues which they would need therapy to recover from.
He said, “I think the loan apps are causing problems considering the present Nigerian economy. The rise of these loan apps possibly soared in 2020 during the COVID-19 lockdown when people attempted to make up for financial losses or obtain loans electronically. Now that the pandemic is over, people are still seeking out loans online, whereas these borrowers might not have any source of income to pay back the loans.
“Now when these people are bombarded by messages calling them fraudsters, thieves and by the time their family and friends receive these messages as well, it can send them into depression, and in reacting to these negative messages, they might also have anxiety issues or be unhappy. They might also think of suicide. They can as a result have poor sleep because they are thinking of how to repay the loans. Some of them might have low or no appetite.
“These people who have got loans from these apps and have been harassed by these app agents might need mental health professionals to help them and work them through stages of grief. There is a school of thought that if you lost someone, you have to work through it through the five stages of grief: denial, anger, bargaining, depression and acceptance. These people would need therapy and also need someone to step in and help them clear the debts so that the harassments will stop.”
A mental health nurse, Mr Rasine Ibe, noted that the harmful texts sent by these loan sharks could result in physical and mental health issues.
“First of all, I think the impact of these apps on people tell on the health of those involved in terms of them developing high blood pressure which can possibly lead to associated conditions like stroke.
“Going through these messages and being in contact with about two persons who have been victims of this humiliation, I can say its effects are in two ways: short term and long term. The short terms effects are sleep disorders, appetite concerns, guilt, regret and shame, which can take a toll on their self-esteem and lead some of them into substance abuse and misuse.
“In more serious cases, there could be suicidal ideation, even outright suicide. They would feel lonely and depressed because they are at the point where nobody wants to associate with their label as a ‘fraudster’ which can trigger suicidal ideation.
“The long term effect of this is posttraumatic stress disorder. There is nothing wrong in getting a loan, but these bad experiences can put people at a risk of developing neurotic conditions and deprive them of profitable opportunities in the future,” he said.
The Director, Health and Development Foundation, Mr Usen Essien said, “Research has shown that there are what are known as impulsive disorders. There are people who buy things they do not want because they just have an uncontrolled impulse to buy, so this could possibly lead to debt addiction. Some people borrow, not necessarily because they are cash strapped, but because they have access to what they think is free money.
“But then, when you look at people who get money from these loan apps without the plan to pay back – and I am specifically referring to those who obtain loans without any intention to pay back – they might have criminal tendencies rather than an addiction, and they also lack integrity. However, these companies should look for a more humane and civilized way to recover their money and even in giving out their loans, so that they do not run into trouble.”
“The psychological impacts of their threats are enormous – both on the customer and of course, the contacts to whom messages are sent about the defaulters. One, these messages cause emotional stress to people because it puts them in a situation where they begin to think of how to remedy the damage already caused to their reputation, especially for those who genuinely want to pay back but are limited by certain circumstances.
“Two, these messages cause aggression. Many people react to threats with aggression, because it is a coping mechanism and at the end of the day, their self-esteem is still intact.
“They react that way as a means of protecting their self-confidence. Three, these negative messages result in low self-esteem, particularly when people are not able to refund loans due to unpredictable circumstances; they would not be able to cope with friends and family again and this also results in lower productivity at work. They can also lead to self-worthlessness.”
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