A storm of outrage is brewing on Nigerian Twitter after a controversial incident involving the money-lending app, FairMoney.
The app has come under fire after a woman intending to borrow ₦100,000 was mistakenly credited ₦1 million. To her shock, FairMoney demanded she repay ₦1.9 million in 11 months, amounting to an alarming 97.22% interest rate.
The borrower sought to cancel the loan immediately but was ignored by FairMoney’s customer service multiple times.
When she eventually made contact, she was told that the loan could only be cancelled if she paid ₦1,188,845.84 within three days.
If she failed to meet this demand, the full repayment of ₦1,972,200 would stand.
This incident is not an isolated one. Last year, FairMoney faced similar criticism when a user applied for a ₦2,500 loan but was mistakenly credited ₦2 million.
Despite promptly returning the amount, the user was still saddled with a 240% interest rate, requiring her to pay ₦6.8 million within a month.
Public outcry on Twitter ultimately pressured the app to reverse the charges.
The latest controversy has reignited discussions on the legality of FairMoney’s lending practices, with many Nigerians questioning whether such exorbitant interest rates and repayment terms comply with financial regulations.
FairMoney responds to the allegations
Amid mounting backlash, FairMoney has issued a statement providing its side of the story. According to the app, the customer, Ijeoma, initiated a loan liquidation request that is now being processed.
FairMoney clarified that customers are allowed to select their preferred loan amount during the application process and are given a three-day grace period to return funds mistakenly credited without penalties or interest.
The company stated that in Ijeoma’s case, their records show she used a significant portion of the ₦1 million credited, exceeding the ₦100,000 she initially intended to borrow.
Consequently, FairMoney treated the situation as a loan liquidation and provided her with a settlement amount of ₦1,118,845.84 to close the loan.
The statement also confirmed that Ijeoma made the required payment and that the loan closure process is expected to be completed within 24-48 hours.
“We appreciate your commitment to ensuring transparency and fairness, and we are here to provide any further support needed,” FairMoney said.
Despite the clarification, public anger continues to mount as Nigerians question the fairness and transparency of FairMoney’s lending policies.
Many are calling for stricter oversight of digital lending platforms to protect consumers from predatory practices.
