Have you seen an unexpected debit from a loan app on your bank statement? You are not alone. Many Nigerians face wrongful loan app debits, causing financial stress and confusion. This guide provides expert tips and a clear, actionable plan to resolve this issue.
We will walk you through the proven methods to dispute these charges effectively. From gathering evidence to escalating your complaint to the Central Bank of Nigeria (CBN), this complete guide covers every step tailored for the Nigerian context.
Requirements / What You Need
Before you begin the dispute process, gathering the right information is crucial for a strong case. Nigerian banks and regulators require specific proof. Here’s what you need to have ready:
- Your Bank Statement: A printed or digital copy showing the unauthorized debit. Clearly highlight the transaction. You can get this via your bank’s mobile app, by visiting a branch, or at a cyber café if you need assistance printing.
- Transaction Details: The exact amount, date, time, and the merchant name (e.g., “*LAPO MICROFINANCE*” or “*FAIRMONEY LOAN*”). This is on your statement or SMS alert.
- Your Bank Verification Number (BVN): Essential for all financial identity verification in Nigeria.
- Registered Phone Number: The line linked to your bank account and the loan app. Have it ready for OTPs and calls.
- Evidence of No Loan: Screenshots proving you never applied. This includes no app on your phone, no SMS approval, or no email agreement. Many Nigerians misunderstand that an SMS saying “You are eligible” is not a loan approval until you accept the terms.
- Patience and Time: The process can take days or weeks. Be prepared for follow-ups, network issues, and possible visits to your bank branch.
Step-by-Step Process
Step 1: Immediately Contact Your Bank
First, call your bank’s customer care line (e.g., 0700 225 5226 for GTBank, *901# for Zenith) to report the fraudulent debit. They will log a complaint and give you a Ticket ID or Reference Number. Write this down. They may initiate a “chargeback” process, which can take 3-10 working days. Be persistent; you may need to call multiple times due to network issues or long wait times common with Nigerian call centers.
Step 2: Gather and Submit Formal Evidence
Visit your bank branch with the requirements listed earlier. Ask to fill a dispute or fraud form. Submit copies of your statement and evidence. Get a stamped acknowledgment copy. This physical step is crucial in Nigeria, as it officially puts the bank on notice and is often required before further escalation.
Step 3: Directly Contact the Loan App Company
Find the loan app’s official customer support email or phone number (often buried in their Google Play Store description). Send a formal email with your evidence and bank reference number. Be prepared for slow or automated responses. Take screenshots of all communications. Many apps will only act under pressure from a bank or regulator.
Step 4: Escalate to the Central Bank of Nigeria (CBN)
If after 2 weeks there is no resolution, escalate to the CBN. Visit the CBN Consumer Protection Department portal. File a complaint online, uploading all your evidence and correspondences. The CBN will assign a case number and mediate. Note that the portal can be slow; save your progress frequently and ensure you have a stable internet connection, perhaps from a trusted cyber café if needed.
Step 5: Follow Up Relentlessly
The biggest hurdle is follow-up. Mark your calendar to call your bank’s relationship manager every 3-4 days for updates. Politely remind the CBN via their portal if your case stalls. Persistence is key, as systems in Nigeria can be bogged down by high volumes of complaints. Keep a dedicated file for all documents and reference numbers.
Alternative Methods
If the standard process is slow, consider these alternative routes tailored to different Nigerian contexts. The best choice depends on your location and urgency.
For a faster physical escalation, you can visit the CBN Consumer Protection Department in person. Branches exist in Lagos (Tinubu Square), Abuja (Central Area), and other state capitals. This is better if you live near these centres and need to present complex evidence directly. It often yields quicker attention than the online portal.
For a tech-savvy, online-only approach, use social media. Publicly tweet at the official handles of your bank (e.g., @ubagroup, @GTBank) and the loan app, detailing the issue with your reference number. Tag the @CentralBankNG and use hashtags like #WrongDebit. This method is better when you have a strong digital paper trail and want to leverage public pressure for a swift resolution.
Finally, for collective action, if you discover many others were debited by the same app, you can jointly report to the Federal Competition and Consumer Protection Commission (FCCPC) in Abuja. This is better for widespread fraud, as the FCCPC can investigate and sanction the entire company.
Common Problems and Solutions
Problem: The CBN Consumer Portal is Down or Rejecting Uploads
This is a frequent issue due to high traffic or maintenance. Many Nigerians get frustrated and give up at this stage.
Solution: First, try accessing the portal very early in the morning (before 9 AM) or late at night when traffic is lower. If it persists, prepare your complaint as a single PDF document containing all evidence. Then, send it directly via email to the CBN at cpd@cbn.gov.ng with a clear subject line (e.g., “Formal Complaint: Unauthorized Loan App Debit – Acct No XXXX”). This official email is a valid alternative channel.
Problem: The Bank Says “We Can’t Reverse, Contact the Merchant”
Banks sometimes deflect responsibility, telling you to deal directly with the loan app company, which is often unresponsive.
Solution: Politely but firmly remind them of the CBN Regulation on Instant Payments which holds them accountable for transactions on their platform. Insist they initiate a formal “chargeback” or “dispute process” as your financial service provider. Quote your earlier Ticket ID and state you will be forced to escalate to CBN. This usually prompts them to act.
Problem: The Loan App Debited an Old Phone Number/Account
You changed your SIM or bank account, but a loan app you used years ago debits your new account, often due to BVN linkage.
Solution: Immediately file a complaint with your current bank and the CBN, but also contact NIBSS (Nigeria Inter-Bank Settlement System) to understand your BVN linkages. You may need to formally request the loan app to delink your BVN from their system, providing proof of account closure. This is a complex but necessary step to prevent future debits.
Fees, Costs and Timeline
Understanding the potential costs and timeline sets realistic expectations. The official process should be free of charge. Filing a complaint with your bank, the CBN, or the FCCPC does not require any payment. Be wary of agents or touts at cyber cafés or near bank branches who may offer to “fast-track” your complaint for a fee, such as ₦2,000 to ₦5,000; this is unnecessary and often a scam.
The only legitimate costs are incidental: transportation to your bank or CBN office (₦500 – ₦3,000 depending on your state), and possibly printing/photocopying charges at a business centre (₦50 – ₦100 per page).
For the timeline, a bank chargeback investigation typically takes 5 to 10 working days. If escalated to the CBN, add another 10 to 20 working days for mediation and resolution. Complex cases, especially those involving BVN delinking, can extend to a month or more. Persistence and proper documentation are key to avoiding unnecessary delays.
Warnings and Scams to Avoid
While disputing a wrong debit, stay vigilant against these common Nigerian scams designed to exploit your situation:
- Fake Recovery Agents: Individuals on WhatsApp, Facebook, or even at bank premises may claim they have “insider connections” at CBN or your bank to resolve your case for a fee. Never pay anyone for this service. All official channels are free.
- Phishing Links and Fake Portals: You may receive SMS or emails with links to “CBN Dispute Portal” or “Bank Fraud Form.” These are designed to steal your banking details. Always type the official CBN website (www.cbn.gov.ng) directly into your browser.
- SIM Swap Scams: Scammers, pretending to be from your bank, may call to “verify your details” to process your dispute. They are often after your OTP or to initiate a SIM swap. Never share your OTP, BVN, or full card details over the phone. Your bank already has your information.
- Upfront Fee Requests: Any request for “processing fees,” “legal charges,” or “stamp duty” to initiate your complaint is a red flag. The legitimate process involves zero upfront payment.
Acceptance, Use and Next Steps
The dispute process outlined is widely accepted across Nigeria’s financial ecosystem. It is the standard procedure recognized by all deposit money banks (commercial and microfinance), the Central Bank of Nigeria (CBN) as the primary regulator, and the Federal Competition and Consumer Protection Commission (FCCPC). Whether the debit came from a registered fintech app like FairMoney or an obscure one, this framework applies.
Your immediate next step is to initiate Step 1 from the process section: contact your bank to get that crucial reference number. Do this today, as delays can weaken your claim. Simultaneously, gather all the documents listed in the requirements section.
It is important to understand the limitation: this process is for wrongful or unauthorized debits. If you genuinely took a loan and are disputing the interest or terms, that falls under a different consumer complaint about lending practices. However, for clear cases of fraud where money was taken without your consent, this guide provides your clear path to redress.
Frequently Asked Questions
Can a loan app block my BVN for disputing a debit?
No, a loan app cannot unilaterally block your BVN. Only your bank or regulatory bodies like the CBN or NIBSS can place restrictions on a BVN, typically for serious infractions like confirmed fraud. Disputing an unauthorized charge through official channels is your right as a consumer and is not a punishable offence.
How long does the CBN take to resolve such complaints?
The CBN aims to resolve complaints within 20 working days after acknowledgment. However, due to high volumes, it can sometimes take longer. The key is to ensure you submitted a complete complaint with all evidence. You can check your case status on the CBN Consumer Protection portal using your unique case reference number.
What if the loan app is not registered with CBN?
If the app is unregistered, your bank becomes even more critical. Report it immediately to your bank as a fraudulent merchant transaction. Also, file a report with the FCCPC and the Nigeria Police Force Cybercrime Unit. Your bank’s chargeback process is your primary tool for recovering funds from unregulated entities.
Will disputing affect my credit score?
Disputing an unauthorized debit will not negatively affect your credit score. Your score is impacted by your repayment history on verified loans. However, if the loan app falsely reports the disputed amount as a default to credit bureaus, you must contact the bureau (like CRC Credit Bureau) with your CBN case resolution to clear your record.
Can I go to the police instead of CBN?
Yes, you can file a report at any police station, especially for clear cases of theft or fraud. Obtain a police report. This can strengthen your case when escalating to the CBN or your bank. For widespread digital fraud, the EFCC Cybercrime Unit or the Police Force Cybercrime Unit in Lagos or Abuja are the appropriate authorities.
What if my bank refuses to give me a transaction statement?
Your bank is legally obligated to provide your statement. If a branch refuses, escalate to their head office customer service. As a last resort, mention this refusal in your CBN complaint, as it violates your rights. You can also access recent transactions digitally via your bank’s app or USSD code for free.
Disclaimer
This article is for informational purposes and reflects general procedures for disputing unauthorized transactions in Nigeria. Financial regulations and processes may change. It is not legal advice. For specific guidance on your situation, please consult directly with your financial institution or seek advice from a qualified legal or financial advisor. Always rely on official communication from the Central Bank of Nigeria and your bank for the most current information.