Why and how Lendsqr doesn’t work with predatory lenders

Lendsqr was born out of a deep-rooted conviction: to bridge the credit gap in Nigeria and Africa while upholding the highest ethical standards. 

The very problem we aim to solve – the lack of accessible credit – is a symptom of a larger issue: a breakdown in trust.

Our founders and team operate with a steadfast commitment to integrity because we understand that building a sustainable and impactful lending platform requires more than just financial success. It demands a steadfast adherence to ethical principles, so we have chosen to forge a different path.

Unethical lending practices have eroded public confidence in financial institutions, leaving countless individuals and businesses at the mercy of predatory lenders. The actions of unethical lenders cast a long shadow over the entire lending industry.

Their predatory practices, exorbitant interest rates, and aggressive collection tactics not only harm individual borrowers but also create a toxic environment that discourages responsible lending. 

And we’ve met a lot of them.

Featured read: How to report unethical lenders

How Lendsqr doesn’t work with predatory lenders

We’ve met numerous lenders with questionable practices. This is why we’ve implemented stringent measures to protect our platform and our users.

1. Predatory lenders who want to abuse data privacy:

In an era where data is gold, we treat it as such. We understand the sensitivity of personal information so lenders who request access to customer data beyond what is necessary for loan assessment and management are immediately flagged.

Sharing customer information with third parties without explicit consent is a strict no-no. We believe in data privacy and security, and any lender who violates this trust is shown the exit.

2. Unethical lenders who lack professional integrity:

We expect the highest level of professionalism from our lenders. This includes respecting borrower privacy, avoiding aggressive collection tactics, and providing transparent loan terms. Any lender caught engaging in deceptive practices, such as using SMS SDKs to extract unauthorized information, is swiftly removed from our platform.

We have zero tolerance for harassment of borrowers, and terminate any lender found to be engaging in such behavior. Additionally, we verify the accuracy of information provided by lenders. Any discrepancies or outright lies are grounds for immediate dismissal.

3. Predatory lenders who want to operate without a license or essential documents:

We believe in transparency on both sides of the lending equation. While we allow lenders to start lending for free after signing up, the system halts after testing a couple of loans, so lenders are required to provide KYC documents before they can resume operations on Lendsqr.

This includes providing essential documents like the Certificate of Incorporation (CAC), lender license, and board resolution. This not only ensures the legitimacy of our partners but also protects our users from potential fraud.

Featured read: Requirements for a moneylenders license in Nigeria

4. Unethical lenders who fail to comply with regulations:

Our work doesn’t stop at onboarding. We maintain a constant surveillance of lender activities. Any signs of fraudulent behavior, such as charging upfront fees or engaging in misleading practices, result in immediate termination.

Featured read: 7 reasons why most lenders fail within a year

Ethics is a fundamental part of our company culture

Beyond the obvious moral imperative to avoid aiding those who exploit others, there are significant practical reasons for our unwavering commitment to ethical business practices.

Engaging in unethical behavior carries substantial risks, from legal repercussions to reputational damage. These distractions can divert our focus from our core mission: providing accessible and fair financial services.

However, our commitment to ethics transcends mere risk avoidance. It is a fundamental aspect of our company culture.

We believe in doing the right thing, even when no one is watching. This unwavering dedication to integrity is what sets Lendsqr apart and drives our success.