LENDSAFE’s Deceptive Loan Recovery Methods Hits Borrowers 1,700% APR, Vicious Threats, Defying CBN and FCCPC

LENDSAFE operates under SMARTLOANS INTEGRATED SERVICES LIMITED, a company registered with RC-1799587 and incorporated on May 31, 2021, with headquarters at No. 7 New Hospital Road, Karu, AMAC, FCT, Nigeria.

While SMARTLOANS INTEGRATED SERVICES LIMITED appears on the FCCPC’s list of approved digital lenders with full approval operating multiple apps including HOVER LOAN APP, KORRECT KASH APP, LEND SAFE APP, LEND JOINT APP AND DISTRO KASH APP the company’s actual practices reveal a darker reality that contradicts regulatory requirements.

Manipulated Endorsements and Questionable Legitimacy

LENDSAFE has been exposed for manipulating PlusTV Africa news footage using AI technology such as Deepfake and DeepFace to create fake endorsements, making it appear as though the credible news outlet was promoting their loan app. This manipulated content spread rapidly across Facebook, preying on the financial vulnerabilities of Nigerians amid economic hardship.

Predatory Interest Rates and Hidden Charges

LENDSAFE claims its interest rate is 0.08% daily, which equals about 29.2% annually, but many users complain that the actual cost is much higher due to hidden charges and late payment penalties. Some borrowers claim that they were charged between ₦300 and ₦500 daily for late fees which can quickly push your loan balance out of control.

The 4.7% daily charge you mentioned represents a staggering 1,715.5% annual percentage rate a figure that blatantly violates ethical lending standards and exploits desperate borrowers.

Violation of CBN Requirements

The Central Bank of Nigeria’s consumer protection regulations require financial institutions to provide clear disclosure of all fees, fair treatment of borrowers, and ethical debt recovery practices. Regulations specify a cooling-off period of 3 days after signing, allowing customers to cancel loan contracts.

Here’s what LENDSAFE is doing wrong:

No Grace Period: CBN-backed loans typically include grace periods ranging from 3 months to 18 months depending on the loan type. LENDSAFE provides no grace period and begins charging exorbitant daily penalties immediately after the due date.

Lack of Transparency: The company fails to disclose the true cost of borrowing upfront, violating consumer protection requirements.

Aggressive Recovery Methods: The company employs harassment tactics that directly contravene FCCPC guidelines.

Harassment Campaign: A Pattern of Abuse

The threatening message you received 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” is not an isolated incident.

Documented Cases of Harassment:

July 2025 – Lagos Borrower Harassment: Olasunkanmi, a prospective corps member in Lagos State, repaid his loan but LENDSAFE continued to show him as defaulting, with interest charges still accumulating. They called his contacts, slandering him and causing tension with his business partners and associates even after he paid ₦118,100.

May 2025 – Voice Message Threats: LENDSAFE agents sent WhatsApp messages to a defaulter’s mother and sister, claiming they had her pictures and were ready to publicly disgrace her. An agent sent a voice message saying: “All her information has been tracked. Even her pictures are here with us. The way she will trend ehn, she won’t like it, and she might even be a big disgrace to her family”.

App Store Reviews: User reviews on the Apple App Store include threatening messages such as: “ur picture shows u are too young to die. if Ledsaf call me again, i will settle it spiritually with u by night Stubborn fly ends in grave” and “WARNING ⚠️ Report has reached us few days ago here in the KIRIKIRI POLICE STATION from Lendsafe and Palmpay That you have been in a FRAUDULENT activity with their hard earned MONEY”.

Regulatory Response and Violations

The FCCPC has provided guidelines for Nigerians to report harassment by online loan apps, as concerns grow over unethical lending practices. Borrowers who miss repayment deadlines have reported receiving defamatory messages, threats, and even the unauthorized sharing of their personal photos with contacts.

The FCCPC reiterates its commitment to ensure legal and ethical operations in digital lending and encourages consumers to consider/patronise only approved DMLs, with feedback and complaints forwarded to [email protected].

What This Means

Despite LENDSAFE’s official approval status, the company operates a predatory lending system that:

1. Charges usurious interest rates far exceeding reasonable lending standards
2. Provides zero grace period contrary to CBN best practices
3. Employs intimidation tactics including threats to contacts, defamation, and psychological warfare
4. Uses deceptive marketing including manipulated media endorsements
5. Continues harassment even after repayment, leaving borrowers trapped in debt cycles

What Borrowers Should Do

If you’re being harassed by LENDSAFE:

1. Document everything: Screenshots, call recordings, threatening messages
2. Report to FCCPC: Email [email protected] with evidence
3. Report to CBN: File complaints through official CBN channels
4. Do not engage with threats: Loan sharks rely on fear and intimidation
5. Seek legal counsel: The threats constitute criminal harassment under Nigerian law

The gap between LENDSAFE’s regulatory approval and their actual operations represents a systemic failure in oversight. While the company may have paperwork in order, their practices reveal an exploitative business model designed to trap vulnerable Nigerians in perpetual debt through fear, shame, and financial manipulation.

No legitimate financial institution threatens borrowers with spiritual harm, public disgrace, or fabricates police reports. LENDSAFE’s behavior isn’t just unethical it’s potentially criminal.