LENDSAFE operates underneath SMARTLOANS INTEGRATED SERVICES LIMITED, an organization registered with RC-1799587 and integrated on Might 31, 2021, with headquarters at No. 7 New Hospital Highway, Karu, AMAC, FCT, Nigeria.
Whereas SMARTLOANS INTEGRATED SERVICES LIMITED seems on the FCCPC’s checklist of accepted digital lenders with full approval working a number of apps together with HOVER LOAN APP, KORRECT KASH APP, LEND SAFE APP, LEND JOINT APP AND DISTRO KASH APP the corporate’s precise practices reveal a darker actuality that contradicts regulatory necessities.
Manipulated Endorsements and Questionable Legitimacy
LENDSAFE has been uncovered for manipulating PlusTV Africa information footage utilizing AI know-how resembling Deepfake and DeepFace to create faux endorsements, making it seem as if the credible information outlet was selling their mortgage app. This manipulated content material unfold quickly throughout Fb, preying on the monetary vulnerabilities of Nigerians amid financial hardship.
Predatory Curiosity Charges and Hidden Costs
LENDSAFE claims its rate of interest is 0.08% every day, which equals about 29.2% yearly, however many customers complain that the precise price is far increased on account of hidden fees and late cost penalties. Some debtors declare that they had been charged between ₦300 and ₦500 every day for late charges which might rapidly push your mortgage steadiness uncontrolled.
The 4.7% every day cost you talked about represents a staggering 1,715.5% annual share fee a determine that blatantly violates moral lending requirements and exploits determined debtors.
Violation of CBN Necessities
The Central Bank of Nigeria’s client safety rules require monetary establishments to offer clear disclosure of all charges, honest therapy of debtors, and moral debt restoration practices. Rules specify a cooling-off interval of three days after signing, permitting prospects to cancel mortgage contracts.
This is what LENDSAFE is doing fallacious:
No Grace Interval: CBN-backed loans sometimes embrace grace durations starting from 3 months to 18 months relying on the mortgage kind. LENDSAFE offers no grace interval and begins charging exorbitant every day penalties instantly after the due date.
Lack of Transparency: The corporate fails to reveal the true price of borrowing upfront, violating client safety necessities.
Aggressive Restoration Strategies: The corporate employs harassment ways that immediately contravene FCCPC tips.
Harassment Marketing campaign: A Sample of Abuse
The threatening message you obtained from +234 707 701 9210 stating “THIS MORNING, ITS EITHER YOU SUFFER OR YOU SURVIVE! YOU AND YOUR CONTACTS WILL REALLY SUFFER FROM OUR AGENTS/ ICT FAILURE TO PAY BEFORE 11AM” isn’t an remoted incident.
Documented Instances of Harassment:
July 2025 – Lagos Borrower Harassment: Olasunkanmi, a potential corps member in Lagos State, repaid his mortgage however LENDSAFE continued to point out him as defaulting, with curiosity fees nonetheless accumulating. They referred to as his contacts, slandering him and inflicting stress along with his enterprise companions and associates even after he paid ₦118,100.
Might 2025 – Voice Message Threats: LENDSAFE brokers despatched WhatsApp messages to a defaulter’s mom and sister, claiming they’d her footage and had been able to publicly shame her. An agent despatched a voice message saying: “All her data has been tracked. Even her footage are right here with us. The best way she is going to development ehn, she will not prefer it, and she or he would possibly even be a giant shame to her household”.
App Retailer Evaluations: Consumer critiques on the Apple App Retailer embrace threatening messages resembling: “ur image exhibits u are too younger to die. if Ledsaf name me once more, i’ll settle it spiritually with u by evening Cussed fly ends in grave” and “WARNING ⚠️ Report has reached us few days in the past right here within the KIRIKIRI POLICE STATION from Lendsafe and Palmpay That you’ve been in a FRAUDULENT exercise with their hard-earned MONEY”.
Regulatory Response and Violations
The FCCPC has supplied tips for Nigerians to report harassment by on-line mortgage apps, as considerations develop over unethical lending practices. Debtors who miss compensation deadlines have reported receiving defamatory messages, threats, and even the unauthorized sharing of their private pictures with contacts.
The FCCPC reiterates its dedication to make sure authorized and moral operations in digital lending and encourages customers to contemplate/patronise solely accepted DMLs, with suggestions and complaints forwarded to [email protected].
What This Means
Regardless of LENDSAFE’s official approval standing, the corporate operates a predatory lending system that:
- Costs usurious rates of interest far exceeding cheap lending requirements
- Supplies zero grace interval opposite to CBN finest practices
- Employs intimidation ways together with threats to contacts, defamation, and psychological warfare
- Makes use of misleading advertising together with manipulated media endorsements
- Continues harassment even after compensation, leaving debtors trapped in debt cycles
What Debtors Ought to Do
If you happen to’re being harassed by LENDSAFE:
- Doc every thing: Screenshots, name recordings, threatening messages
- Report back to FCCPC: Electronic mail [email protected] with proof
- Report back to CBN: File complaints by official CBN channels
- Don’t interact with threats: Mortgage sharks depend on concern and intimidation
- Search authorized counsel: The threats represent prison harassment underneath Nigerian legislation
The hole between LENDSAFE’s regulatory approval and their precise operations represents a systemic failure in oversight. Whereas the corporate could have paperwork so as, their practices reveal an exploitative enterprise mannequin designed to entice weak Nigerians in perpetual debt by concern, disgrace, and monetary manipulation.
No official monetary establishment threatens debtors with non secular hurt, public shame, or fabricates police reviews. LENDSAFE’s conduct is not simply unethical it is probably prison.
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