9 Scare Tactics Loan Apps Use To Demand Loan Repayments
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Mobile loans are a perfect embodiment of the phrase ‘double edged sword’ whereby they could either help you or hurt you depending on the circumstances.
Despite their conveniences during times of emergencies, their ‘dark-sides’ usually materialize upon the lapse of the repayment duration.
While some may offer unpenalized extension periods, some simply do not give a damn and will instantly begin their torturous tactics upon the unfortunate victims.
Below, we will look at some of this crude methods employed by some mobile lenders in the event you default on their loans.
1. Future lower limits
For those that depend on mobile loans for their business sustenance will ultimately feel the pinch if their loan limits are reduced. This will mean that they will need to look alternative sources of capital for their businesses.
2. Persistent calls and SMS
Despite this being an effective avenue of communication with the defaulter, it is the manner with which it is implemented that borders on harassment whereby victims are bombarded with incessant calls and SMS from a variety of numbers within a very short period.
3. Calling of contact lists
This might be one of the most embarrassing techniques in that it exposes the vulnerability of the defaulter to 3rd parties ( contacts saved on phone ) ultimately infringing upon their rights to privacy.
4. CRB Blacklisting
In simple terms, CRB can be likened to a ‘prison’ for defaulters. Once blacklisted, one risks being denied future loans from lenders.
5. Submission to debt collectors/collection agencies
Prolonged periods of default will result in defaulter’s details being forwarded to collection agencies to enforce repayment.
6. Submission to auctioneers
Auctioneers are persons authorized or licensed by law to sell goods or properties at public auctions. Such properties are usually as a result of loan default and are sold in-order to recoup the principal loan amount as well as the interest and penalties accrued overtime.
Skip tracing is the scientific method of locating an individual through the use of a mobile device and network.
8. Contacting of employer
Some mobile lenders will go further and hint on the option of contacting one’s employers to seek forced repayment.
9. Demand letters
A demand letter is a document that gives formal notice that one is considering legal action. It usually notifies the recipient regarding the cause of the letter and the obligations that are to be met within the set notice period.
Failure to adherence will result in legal action prescribed in the demand letter. Usually, costs of the suit are usually borne by the recipient.