The Nigerian Consumer Credit Corporation has warned lenders against harassing or humiliating borrowers over unpaid loans, saying debt recovery must be conducted lawfully and with respect for consumers’ dignity.

The corporation stated this in a statement on Thursday, listing threats, abuse, contacting borrowers’ family members or employers, and publicly shaming debtors on WhatsApp or social media among practices that lenders should not engage in.

“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,” it said.

CREDICORP noted that being indebted was not a crime and stressed that borrowers retained their rights even when they defaulted on loan repayments.

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

It also referenced Section 34 of the Nigerian Constitution, which guarantees the right to the dignity of the human person, and said the FCCPC lending framework prohibits intimidation and privacy violations.

The corporation advised borrowers who believe their rights had been violated during debt recovery to document the alleged misconduct and report it to the Federal Competition and Consumer Protection Commission or the Central Bank of Nigeria.

The latest warning came after CREDICORP had earlier urged Nigerians to consider the full implications of taking loans rather than focusing solely on interest rates.

“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 had said.

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

The corporation, however, stated that its latest guidance was for informational purposes and did not constitute legal advice or official policy guidance.