The Nigerian Consumer Credit Corporation (CREDICORP) has cautioned lenders against using abusive, threatening or humiliating tactics to recover debts from borrowers, stressing that loan recovery must be conducted within the law and with respect for consumers’ dignity.

CREDICORP gave the warning in a statement on Thursday, listing practices such as threats, verbal abuse, contacting borrowers’ relatives or employers, and publicly shaming debtors on WhatsApp and social media as unacceptable debt recovery methods.

“Falling behind on a loan does not give any lender the right to harass you. Debt recovery must follow collection practices. That means: no threats, no abuse, no calls to your family or employer, and no public shaming on WhatsApp or social media,” the corporation said.

The agency stressed that defaulting on a loan does not make a borrower a criminal, noting that consumers continue to enjoy fundamental rights even when they are unable to meet their repayment obligations.

“Being in debt is not a crime, but unfair treatment is,” CREDICORP said.

The corporation also cited Section 34 of the Nigerian Constitution, which guarantees the right to dignity of the human person, and noted that the lending framework of the Federal Competition and Consumer Protection Commission (FCCPC) prohibits intimidation and violations of borrowers’ privacy.

It urged borrowers who experience abusive or unlawful debt recovery practices to keep records of the alleged misconduct and report such incidents to the FCCPC or the Central Bank of Nigeria (CBN).

The warning follows an earlier advisory by CREDICORP urging Nigerians to consider the broader implications of taking loans instead of focusing solely on interest rates.

According to the corporation, prospective borrowers should consider the total cost of credit, repayment terms, the purpose of the loan and the value the funds are expected to create before taking on a financial obligation.

“A loan is more than just an interest rate. Before deciding whether a loan is right for you, look at the full cost of the credit, the repayment terms, what the funds will help you achieve, and the value they could create,” it said.

CREDICORP added: “Don’t judge the loan by one number.”

The corporation clarified that its latest advisory was issued for informational purposes only and should not be interpreted as legal advice or official policy guidance.