Can loan apps block my BVN In Nigeria? That is a popular question by debtors. There have been speculations that loan apps can block your BVN. There have been cases where people have reported that loan apps threatened to block their BVN because they defaulted. The truth here is that a loan app cannot block your BVN. The Central Bank of Nigeria is the sole authority to lock your BVN.
BVN stands for Biometric Verification Number BVN, and it is a unique 11-digit number that is given and regulated solely by the Central Bank of Nigeria that stands as your unique identity as you interact with the country’s financial institutions.
The only thing loan apps can do to block your BVN on their app is to prevent you from borrowing further and from borrowing from other apps.
CBN can only block your BVN when you violate serious laws in the country, and actions must be taken seriously against you.
However, when you default from paying your loan on time, the loan app can auto-debit your ATM if it is like your profile. In other cases, you will be sent persistent messages and possibly call to remind you to pay off. Some loan apps can even go further as sending defamatory messages and displaying your picture on their social media handles, labeling you a fraudster.
The highest most of these loan apps can do to report you to the credit bureau. Credit Bureau will be the one to blacklist your name to your BVN, and it will remain so unless you pay off your full outstanding due loan amount.
However, when you default, loan apps like Carbon, Branch, and FairMoney will give your contact to a loan recovery company that will text and call you persistently until you pay off your loan.
What Rights Should I Give to Loan Apps When Asking for a Loan?
When registering a loan app, you grant them the right to access private and confidential details on your phone.
Some of the rights you give to loan apps when asking for a loan are:
- Your contact list
- You SMS messages
- Your gallery
- Basic/profile details
So these are the rights you sell off to the loan apps when registering. This is why it is essential to go through the terms and conditions of a loan app before subscribing to it fully.
Can Loan App Block My BVN In Nigeria?
Yes. Loan apps can block your BVN in Nigeria through CBN by filing a defaulting complain to credit bureau. Any licensed loan company is regulated by the Central Bank of Nigeria which have the right to file any case against you when you fail to repay your loan which can affect your BVN. BVN is a means of bank verification number to enable the bank to track all your accounts and when you owe with one bank account, your BVN would be blocked, and as such you won’t be able to get loans from other financial institutions as they would rely on the data on your credit report to preapproved your loan request.
However, many of the loan sharks we have today don’t have the right to block your BVN. What happens is not actually to block your BVN but to put a red flag on it that shows you’ve been owing without paying back and other financial institutions to take note before considering your loan request.
In a nutshell, a loan app cannot block your BVN; the only thing a loan app can do when you default in paying their loan is block your BVN in their app, preventing you from borrowing again and accessing other loan apps. Also, they can report you to Credit Bureau for your name to be blacklisted against your BVN. Your BVN can only be blocked by the Central Bank of Nigeria because they have the sole right to your BVN.
Why Do Fintech Companies Ask for your BVN?
Fintech asks for your BVN for identity confirmation. The BVN acts as a safety scheme because they get to know who you are. However, they cannot use the BVN to access your money, deposit, or transfer funds from your account or to your account.
However, you need to be careful when dishing out your BVN because if the loan app isn’t safe, hackers may attack the app, steal your BVN information, access your bank accounts, and steal your funds.
Is it possible for BVN to be Blocked?
Yes, getting your BVN blocked by the Central Bank of Nigeria is possible. The CBN can block or blacklist your BVN when they discover that you are involved in illegal monetary activities or get information from credible sources that you were involved in fraudulent practices. For example, the EFCC can order CBN to block your contact, and it will be immediately done.
How Do I Stop Loan Apps from Accessing my Bank Account
When registering for your loan app, you grant the app access to your details, including your bank account, contact, SMS, and gallery. To stop the loan app access to your bank account, go to the app, go to “app permission,” and disable it.
Can I Go to the Jail for Not Paying Online Loans in Nigeria?
Failing to pay online loans isn’t a criminal offense; it is a civil crime. You may be charged to court and asked to pay some bills, but you may not be sent to jail.
Can I Block my BVN and Open Another One?
No, you cannot block your BVN and open another one. BVN is a centralized banking system created for every customer using their biometric data. Every individual is entitled to only one BVN. You cannot create another one because your fingerprint isn’t two; it is one.
Also, BVN is only issued by the Central Bank of Nigeria; it never falls victim to fake BVN issuance from financial institutions around the country.
For further reading, check out “How to Stop Loan App from Accessing Your Contact 2022.”
It is essential to know that only the CBN can block your BVN; no loan app can do so. They can only block it in their app. You should be cautious when giving a loan app access to your phone so that you won’t get stories that touch the heart.