Palmpay is one of the fintech companies that offers loans to its users to enable them to meet their urgent financial needs. However, what happens when you default on the PalmPay loan is the focus of this discussion.
Defaulting on Palmpay loans comes with gravy consequences that are better imagined than experienced. If you fail to repay your loan on the due date, your credit score and PalmPay account may be affected, among other negative effects.
Why it is Important to Pay your Palmpay Loan
As it is with repaying loans from other financial institutions, repaying your Palmpay loan is very important. Once you repay your Palmpay loan on time, it will help you to build a good reputation with the platform, thereby helping you to build a good credit score, which will definitely increase your creditworthiness.
Additionally, repaying your loan will save you from the disturbance that normally emanates when you default on a loan. For instance, when you repay your loan on time, Palmpay won’t call you to remind you of the loan; they won’t call your contact or harass you, as is the case when you default on your loan.
Generally, there are numerous benefits that come with repaying your loan. Hence, it is best to repay your PalmPay loan on time too.
What you Should do if you default Palmpay Loan
Once you notice that you may not be able to meet the loan terms, the first thing to do is to reach the Palmpay customer unit via email or phone call. If you contact them, explain to them that you may not be able to pay your loan as agreed, and also inform them of the relentless efforts you’re making towards repaying the loan. If you’re lucky, they may extend the grace window to enable you to pay off your loan.
What Happens If You Don’t Pay Palmpay Loan
Just like defaulting on a traditional loan, failure to pay Palmpay loans attracts serious consequences. Some of the negative rewards are better imagined than experienced. What will happen when you default Palmpay loan are enumerated below:
1. Exponential Increase on the Interest Rate
One of the major consequences of defaulting on a Palmpay loan is that the loan interest rate will increase exponentially. For instance, if you fail to repay your loan on the due date, the loan amount will attract a 20% interest increment for the number of days that you default.
2. Negative Impact on your Credit Score
If you fail to repay your Palmpay loan, your credit score, which determines your creditworthiness, will be negatively affected, which may prevent you from taking loans from other financial institutions in the future. Once your credit score is negative, you may find it very difficult to access loans from some financial institutions across the country.
3. Report to the National Credit Bureau
Another major consequence of defaulting on a PalmPay loan is that you may be reported to the credit bureau. The Credit Bureau is saddled with the responsibility of ensuring that those who took loans adhered to the loan terms by repaying them on time. What happens is that once you’re reported to the credit bureau, you will be blacklisted. Once you are blacklisted, you may not be able to access loans from both fintech and banks until you pay off your loan along with the interest.
4. Blocking of Your Palmpay Account
If you default Palmpay loan, your account may be disabled or blocked entirely. Once your Palmpay account is blocked, you won’t be able to perform any transactions like bill payment, airtime and data top-up, cable subscription, etc., with your Palmpay account. Not only that, you may not be able to borrow money from Palmpay in future when your account is blocked.
5. Installing of Security Plugin in your Phone
If you fail to repay Palmpay loan overtime, your phone may be blocked. What happens is that Palmpay has a security plugin that they can use to block the phone that you used in taking the loan. Once this plugin is installed in your phone, you may only access the Palmpay app while other features in your phone may be disabled. It is designed such that you can access the app which you can use in repaying the loan.
6. Sending Disgracing Messages to your Contact
If you continuously fail to repay your loan, Palmpay may send different messages to your phone contact informing them that you’ve defaulted your loan. This is always disgusting and embarrassing.
7. Arrest and Conviction for Defaulting Loan
Once Palmpay exhausts all the diplomatic measures to recover their loans and it proves abortive, they will be left with no other option than to report you to the security agency and you will be arrested and if found guilty as accused, you will be convicted. If you’ve been keen enough, you may have seen scenarios where Palmpay arrested a loan defaulter with security agents. Tracking you won’t be difficult since your BVN is with them, so they have all your details.
Will Palmpay Call my Contacts
Yes, Palmpay may call your contact if you fail to repay your loan as agreed. Meanwhile, if you keep to the loan terms by repaying it on time, Palmpay will never call your contact. So, to avoid receiving embarrassing messages or disturbing calls from them, just repay your loan on time and you’re good to go.
Palmpay Customer Care Number
For questions, inquiries, or assistance on how you can repay your Palmpay loan, kindly reach out to them via the following handles.
Tel: (0700 7256 4357) 0700 PALM HELP
There are lots of consequences that come with defaulting on a Palmpay loan ranging from a report to credit bureau, disabling of account, blocking your phone to arrest and subsequent conviction if found guilty. Hence, it is best to repay your loan as agreed to avoid negative consequences.