Palmpay blocks customer’s phone for someone else’s loan

Oluwasola Eniola, a resident of Lagos State, told how Palmpay, a mobile money financial service provider, blocked him on his phone for a ₦2,500 loan that someone else got .

Eniola told FIJ he was surprised action had been taken after he told the company he had not taken out a loan from them.

“Although I have the Palmpay app on my phone, I’ve never used it to borrow money before,” Eniola said.

“Imagine my surprise when I got a message from the blues around June that I owed ₦5,000 for a loan of ₦2,500 that I got from them. I was unaware of the money that was borrowed.

“When I received the message, I contacted a Palmpay mobile promoter in my area. She said I shouldn’t care after verifying my account. I don’t know what she did, but the message dissipated that day.

READ ALSO: After FIJ story, Palmpay refunds 40,000 Naira held for over a month to designer

Eniola said that after some time the message was sent to him again and this time he could not access his phone.

“I decided to go to the Palmpay office at the end of June, and I was told to pay back the ₦5,000 or legal action would be taken,” Eniola told IFJ.

“I told them that I couldn’t pay any money since it was not me who had dug the money. I even told them to check the BVN and the information of the person who borrowed the money and contact them.

“Why should I be held responsible for someone else’s breach?”

Phone screen locked

READ ALSO: Customer Wants To Repay Loan, But Palmpay Blocked Access To His Phone

Eniola said the company locked his mobile phone because of his refusal to honor the loan.

“When nothing was done after my complaint to their office, I decided to contact their customer service again after some time. I was asked to pay ₦19,000 to repay the loan,” Eniola said.

“I was speechless, because I thought that since I filed a complaint earlier, they would have frozen the interest rate and then tried to get the actual person who dug the money.

“As I speak, the money is now ₦32,000, and I still can’t access anything on my phone. I don’t even have access to the account that was used to make the said transaction since this is not mine.

The loan operation
The loan operation

READ ALSO: Between Palmpay and Microvest, how Designer’s N40 000 disappeared

When FIJ contacted Palmpay, an agent identified as Edith explained how the mobile money app works in the event of a payment default.

“The way Palmpay works is that we don’t work with SIM cards, we work with phones instead. Indeed, a SIM card is very easy to obtain, so it is easier to get rid of it when a customer does not want to repay a loan,” Edith told FIJ.

“However, what some people do is they take loans and refuse to pay back. Instead of repaying their loans after the repayment date has passed, they are selling the phone to innocent people.

“These innocent people will be the ones to suffer for locked phones and sometimes repay loans.”

About Miley Sawngett

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