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FairMoney Under Fire As Nigerians Lament Unrequested Loans

By Gideon Ayeni

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Online loan apps in Nigeria

The most recent case involves a woman named Ijeoma, who reportedly applied for a ₦100,000 loan from Fairmoney but was mistakenly credited with ₦1 million instead.

The unexpected credit came with a startling repayment condition: ₦1.9 million to be paid back within 11 months, translating to a staggering 97.22% interest rate. Alarmed by the situation, Ijeoma immediately contacted FairMoney’s customer service to rectify the error. However, her calls were allegedly cut off multiple times before she finally got through.

When she eventually reached fairmoney representative, she was informed that the loan could be canceled only if she returned ₦1,188,845.84 within three days. If she failed to meet the deadline, the full repayment amount of ₦1,972,200 would stand. With time running out, Ijeoma’s ordeal sparked widespread debate on social media, with many questioning the ethics and legality of such practices.

GWG.ng reports that this isn’t the first time FairMoney has faced public backlash. In October 2023, another Nigerian woman reportedly applied for a loan of ₦2,500 but was credited with ₦2 million instead.

The repayment terms required her to pay back ₦6.8 million within one month, amounting to an alarming 240% interest rate. The woman promptly returned the ₦2 million, but FairMoney allegedly insisted on the ₦4.6 million penalty. It took an outcry on Twitter to pressure the company into canceling the penalty.

The recurring nature of such incidents has raised questions about the app’s loan disbursement system and the legality of its interest rates. Many Nigerians are calling on financial regulators to intervene and investigate the issues relating to FairMoney’s loans.
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