This article is a guide on how to remove remove your BVN from credit bureau blacklist of loan defaulters. Most people, especially students take short term loans from online lenders and default when it is time to repay without fully understanding the consequences.
Online loan apps can be very useful in times of emergencies as they provide quick loans without requiring much documentation. But if borrowers default when it is time to repay, these apps can cause such a borrower serious headache if they report their BVN to credit bureaus to be blacklisted.
Your 11 digits Bank Verification Number BVN is your key to access any financial service in Nigeria. The number is connected to your biometric details – which means every Nigerian only has one and the number can be used to identify and secure every transaction performed in the country. The number cannot be changed or replaced for an individual.
What is the BVN Blacklist?
The BVN blacklist is a list maintained by the Central Bank of Nigeria (CBN) containing the details of individuals who have been involved in fraudulent activities, violated banking regulations or have a history of defaulting on their loan obligations. The purpose of this list is to prevent such individuals from accessing financial services across the country. Once a person’s BVN is blacklisted, they are restricted from opening new bank accounts or performing transactions using existing ones. This measure helps safeguard the banking system and protect innocent individuals from falling victim to fraud.
Reasons that can get your BVN blacklisted in Nigeria
Loan default: The most popular reason why people get on the blacklist is when they defaulted on the repayment to their creditor within the stipulated period. Even if you pay back days or weeks after your tenor has expired, it can still negatively affect your credit score and can land you on the blacklist. Borrowers who pay back their loans late might still have access to loans but will likely get higher interest rates as they are now deemed as high-risk borrowers, others will likely not get further loans at all because of late loan repayments.
Issuing a dud cheque: Issuing a dud cheque on your account can get you into trouble. Not only will it land you on the BVN blacklist but it can also get you arrested and prosecuted by the police. Issuing a cheque that you know will bounce due to insufficient balance in your bank account is simply a bad idea.
Standing as guarantor to a defaulter: Standing as a guarantor to someone unable to repay their loans can also affect you negatively. You as the guarantor might be held liable and unable to secure a loan until they clear their outstanding. Do not stand as a guarantor to anyone you’re not absolutely sure can repay their debt obligations.
Court orders: In some cases, court orders can lead to an individual’s inclusion on the BVN blacklist, especially if the court determines their involvement in fraudulent activities.
Non-compliance with regulations: Failure to adhere to banking regulations, such as providing false information during the account opening process or using accounts for illegal purposes, may result in blacklisting.
Implications of BVN blacklist
The BVN is perhaps one of the most important financial documents in Nigeria and if compromised, that can lead to some dire consequences including but not limited to;
Unable to secure a loan: The most immediate consequence of being on the BVN blacklist is that defaulters will be unable to secure further credits. Most reputable lenders run a background check on their potential customers to see their credit scores. Individuals with outstanding loans usually get rejected during this process. A credit score is a range of numbers that represent a potential borrower’s history with other lenders. A good credit score means the borrower pays back all their loans on time and does not have a history of default.
Unable to get jobs: Some employers do check the credit history of their potential employees, most especially banks and other financial institutions will not consider people with negative credit for employment. These checks are usually done in the background without telling the applicant, applicants with negative credit will just be getting rejected without being informed of the reason why.
Unable to travel abroad: As getting a visa to travel abroad is becoming more and more stringent, some embassies now include credit history as part of their background check. Embassies prefer immigrants who can handle their financial responsibilities sothey don’t become a burden after travelling. If you are heavily indebted your visa application might not go smoothly until you clear your record. For some students who are travelling abroad for studies, proof of funds and a good credit record might be one of the requirements for them to get a visa.
Unable to secure some government deals: Certain government deals like a job with the Nigerian Intelligence Agency or even the CBN might require applicants to have a spotless credit history. Point is, having your BVN is bad and can deny you plenty of opportunities. Luckily, there is a way to remove your name from the blacklist even if you are on it.
Negative impact on reputation: Being blacklisted can tarnish an individual’s reputation, making it challenging for them to regain trust within the banking industry and the wider community.
How to remove your BVN from credit bureau blacklist
To ensure fairness, the BVN blacklist provides individuals with an opportunity to appeal their inclusion and clear their names. The process involves:
Request your credit report: The first step to removing your BVN from the blacklist is to know whether or not you are on the BVN blacklist and how much exactly you are owing. You can request your free credit report from any of the credit reporting agencies in Nigeria. We recommend you use CreditConnection – their service is free and seamless. getting a credit report will enable you to see which institutions you are owing to and keep track of your loans. Note that loans from loansharks and other online loan apps might not appear here if they are unregulated. If you have an outstanding loan that does not reflect on your record from creditregistery, your lender is most likely an unregistered loan shark.
Pay your debt: The next step in clearing your name from being reported as a defaulter is to pay up what you owe. If you are in a financially difficult situation, ensure you contact your lender to discuss payment options that could ease the burden of paying the loan. Choose a payment plan that will work best for you and follow up until you settle your debt. You can also set up automatic payments on the due date to avoid missing a payment.
clearance certificate/letter of non-indebtedness: Should you have a clearance certificate/letter of non-indebtedness, you can forward the letter to the credit bureau for verification from your lender.
Contact Credit Bureau: After clearing your debt, your lender is obliged to contact the credit bureau and update your records, but this can sometimes not be done as the process is usually automated.
However, you may apply to the credit bureau where you were listed to have your credit profile updated. This can be done by contacting the Bureau via phone/email.
Phone line: +234-807-209-0622
Your email should carry the following details;
- your Full Name,
- Phone Number,
- Bank Verification Number (BVN),
- evidence of payment and Clearance certificates (if any).
This process might take 2-5 working days to be resolved so do not hesitate to follow up with the Credit Bureau.
list of licensed credit bureau agencies in Nigeria
A Credit Bureau Agency is a private company licensed by the CBN to keep a database of how individuals and businesses handle their debt obligations. They keep a record of how much loan is being taken and how soon or late the loan is being paid back in other to protect creditors from loan defaulters. Here are the three main credit bureau agencies licensed to operate in Nigeria and their website.
You can get your free credit report from any of the above. The CBN does not keep a record of credit reports of Nigerians but outsources it to these private companies who can show you yours for a fee. If you have a loan default, these same companies will be the ones to help clear your BVN.
What does BVN blacklist mean?
how can I remove myself from the BVN blacklist?
1. Request your credit report from a CBN-licensed credit bureau to know who exactly you are owing.
2. Pay your debt.
3. Get a clearance certificate/letter of non-indebtedness from your lender.
4. Contact Credit Bureau with proof and request that your name is cleared.