FairMoney is a convenient platform for taking quick loans in times of financial need. Not only that, they are also one of the few cbn approved loan apps in Nigeria. Taking their loans is safe and straightforward. But, sometimes, life’s uncertainties can make it challenging to meet repayment deadlines. So what if you can’t pay back Fairmoney loan on time?
Will Fairmoney come to your house? Will they send police to arrest you? Will they call your contact? Here’s what you should expect and how to handle the situation if it arises.
What Fairmoney will not do
They will not come to your house
- Fairmoney will not come to your house to recover their money. The Nigeria government does not grant them the power to do so.
- They will not call your contact: Fairmoney may call you directly but they will not call your contact. In the situation that they call you, they will only remind you of your debt how you plan to repay it.
Here’s what will happen if you don’t pay your FairMoney Loan
Negative Impact on Your Credit Score
FairMoney reports loan defaults to credit bureaus. This will lower your credit score, which can affect your ability to secure loans from other financial institutions in the future. A bad credit history may also limit your access to certain financial opportunities.
Debt Collection Calls
If you default on your loan, FairMoney will attempt to recover the debt by contacting you. This can involve frequent reminders through calls, text messages, and emails. They may also use debt recovery agents to follow up with you. However, Nigerian law prohibits any form of harassment or threats during this process. Knowing this will help you to stay calm and not panic when this happens.
Possible Legal Action
In extreme cases, especially for large unpaid amounts, FairMoney may consider legal action to recover the funds. While this is rare, it is a possibility. Again, keep in mind that Nigerian laws protect borrowers from undue threats or harassment.
What Should You Do If You Can’t Pay?
Contact FairMoney
The first and most important step is to communicate with FairMoney. Inform them of your situation and your willingness to pay when possible. They might offer a payment extension or help you restructure your loan.
Avoid Ignoring the Debt
Ignoring the problem will only escalate the situation. It’s better to acknowledge your debt and seek a solution.
Know Your Rights
FairMoney has the right to recover its funds, but it must do so within the bounds of the law. If you experience harassment, you can report it to FCCPC.
What you should never do
In a bid to repay your Fairmoney loan, do not attempt to do any of the following
Do not borrow from other loan apps to repay Fairmoney: This is a mistake a lot of people makes daily, They take loan from one app to repay other. In most cases, to repay one app, they have to take from several apps. At the end of the day this will only complicate the issue as more debt will pile up.
Do not panic: You’re not the only one in the situation. Just look out for ways to manage the situation without panic that will impair your mental health
How to Avoid Loan Defaults in the Future
- Borrow Within Your Means
Only take loans you are confident you can repay on time. - Budget for Repayments
Ensure you set aside money for loan repayments to avoid missing deadlines. - Plan for Emergencies
Having an emergency fund can help cover unexpected expenses, reducing the need to rely on loans.
Conclusion
Failing to repay your FairMoney loan can lead to financial consequences, but it’s not an unsolvable problem. Communicate with FairMoney, find a way to reschedule your repayment, understand your rights, and seek help if needed. Taking proactive steps can help you manage the situation and protect your financial future.
