Consequences of ignoring your loan obligation

“It’s the work of the devil”

Have you ever used that line? I hope not.

It’s not only overused but it’s also a lie 11 out of 10 times.

But let’s assume it was indeed the devil that lured you into refusing to repay your loan on time, here are the things that could happen — Buckle up! some of them are not pretty at all;

If there ever was a time for you to regret putting in your email or phone number for anything, it’s when you decide to ignore the lender when it’s your due date.

The lender isn’t going to cut you some slack because they’re also worried you might never pay back. (Nobody likes to lose money).

With email after email, the lender will try to contact you multiple times in several days to remind you of your obligation.

These emails and SMS will contain reminders of your obligations as well as warnings of the consequences you will most likely face. Although it may seem annoying to you, the lender wants reassurance that you have no plans of running away with their money.

The devil might whisper sweet-sweet nonsense in your ears and tell you to block the lender from sending you emails. (Jumoke that’s bad behavior na).

And now the lender becomes even more apprehensive and starts calling at almost every moment. (Wahala o!). It’s usually at this point that most defaulters start giving excuses as to why they’ve failed to settle their loans.

Lenders are less likely to listen to your excuses when you do not reach out to them at the start of your troubles or the moment they first contact you. (It’s because you wasted time and acted like you were planning to run away na). Most lenders won’t go for blatant verbal threats once they get to the point of incessant calls but they may passive-aggressively remind you of the consequences of defaulting on a loan.

At this point, the lender has had enough, marked you as a defaulter and made a report to the credit bureau, with your name and required information, where you will be blacklisted. (Double wahala).

Blacklisting comes with a lot of problems, especially between you and future lenders (if you ever want a loan approved it’s likely to be tough).

The realization suddenly hits you, that all this could have been avoided if you had taken the right steps or not ignored your repayment in the first place. Sad, right? Not to worry, here’s how you can get your name off the bureau blacklist and repair your history.

Once you’ve been reported to the credit bureau it’s only a matter of time before you are hit with a court order. (My Lord, may I?).

The lender has to get their money back, and at this point, you’ve ruined any chance of amicably settling your loan obligation. (See how you’ve added extra expenses for Lawyer? The money you refused to pay back).

Ignoring a court order like you ignored the lender’s calls and email should be the furthest thing on your mind, keep your head down and do as you are told to avoid any more trouble (you’ll be arrested if you ignore a court order. Triple wahala!).

Some unethical lenders, in their anger will disregard your right to data privacy and access your personal information e.g your contact list

To them, having you blacklisted by the credit bureau isn’t enough, they would want to maliciously share your loan default with those closest to you, in a bid to soil your name.

Yes, ignoring your loan obligation is bad behavior. But on no account should your data privacy be violated.

Irorun would never do anything remotely harmful to your reputation and your privacy. You have trusted us with your details and we prioritize the rights of our customers. Including erring customers.

We would also never give your information or share our experiences with you with third-party without your express permission. And if for any reason your rights are violated by an unethical lender, here’s how to report them.

Another consequence that comes with ignoring your loan obligation is having to forfeit your collateral. (You go fit give up your house so?).

The lender has the legal right to seize and sell your collateral to cover up your debt. This is mostly true for large/secured loans.

Before you decide to ignore your loan obligation, you should put some thought into what you stand to lose. You might think that you’ve been able to play a fast one on the lender, but in the long run, you’re bound to lose more. For your peace of mind, apply for a loan amount you’ll be able to pay back on time. (I’m sure you don’t want to stay under bridge abi?).

While you may not be arrested or go to jail for defaulting on a loan (It is not a criminal offense), it’s still an offense punishable by law.

You could be sued to court and asked to pay a fine that may be significantly larger than the amount that you previously owed or ordered to pay your debt which failure to do so would then make it a criminal offense and you could be sentenced to jail. (You see how the problem is increasing???).

You could end up spending more than you bargained for due to your negligence. Again, you should know you can’t play slippery with the lender (especially Irorun). We’ll get our money back that’s for sure.

The one inescapable thing that happens when you ignore your loan obligation is a soiled reputation. (Chai! Your name will be dragged in the gutter).

It becomes a lot harder for you to take out new loans even from a different lender. No self-respecting lender worth their salt is going to be willing to lend to an individual whose name shows up on the credit bureau blacklist. (except a loan shark aka unauthorized lender). Here’s how you can spot them and also why you should FLEE from them!.

In the beginning, it may not look like such a big deal to get blacklisted, after all, what’s money you cannot make on your own abi?. But try to picture a scenario where an expensive health emergency comes up. Salary is still weeks away. Friends and family are not able to help you out. Now, you’ve decided to get a small loan approved…

Oh wait, you’re a known defaulter (you forgot abi? The database didn’t forget o!). See how your previous recklessness can cost a life? A situation that could have been avoided if only you didn’t ignore your loan obligation.

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Irorun always wants your borrowing experience to be free of hitches and the best way we do this is to provide you with sufficient expert information and assistance.

Send us a message today at support@irorun.com!