As a borrower in Nigeria, you’re entitled to a three-business-day cooling-off period to cancel or reject a bank loan without penalties, interests, or consequences, as per Regulations 4.3.6 of the Consumer Protection Regulations. However, this provision can be a double-edged sword if not properly understood.

Case Study :

I recently applied for a ₦2 million loan, only to discover that the interest rate would be ₦700,000. Horrified, I quickly sought to cancel the loan, but the cancel button had vanished, and the ₦2 million had already been credited to my account. When I contacted customer care, I was informed that I had to pay the interest, despite my protests.

The Cooling-Off Period: A Borrower’s Right

In Nigeria, the cooling-off period for bank loans, microfinance loans, and fintech loan apps is three business days. This allows borrowers to cancel or reject a loan without incurring penalties or interest. However, this right can be waived if explicitly stated in the loan agreement.

Key Considerations

Before taking action, it’s essential to:

1. Review the loan agreement : Check if you waived the three-day cooling-off period.

2. Confirm evidence of cancellation : Verify that you contacted the customer care within the three-day window to cancel the loan.

Seeking Redress

If you’ve met the above conditions, you can consider suing the bank and demanding damages. However, it’s crucial to understand the terms and conditions of your loan agreement and the applicable regulations.

Takeaways

– Always carefully review loan agreements before signing.
– Understand your rights as a borrower, including the cooling-off period.
– Keep records of communication with customer care.

By being informed and vigilant, Nigerian borrowers can protect their rights and make informed decisions about their financial obligations.

A common challenge many tenants face is dealing with landlords over unpaid rent or disputed terms. In your situation, you’ve been served a court order stopping you from removing your belongings due to a mesne profit claim of ₦600,000 for staying two extra months beyond your notice to quit period. Your landlord is also demanding ₦10,000 per day as rent until you vacate the premises.

What is Mesne Profit?

Mesne profit refers to the amount a tenant owes their landlord for occupying the premises after the tenancy agreement has expired or been terminated. According to the Supreme Court in _Odutola v. Papersack Nigeria Ltd (2006)_, mesne profit represents the intermediate profits between the time a tenant stops holding the premises as a tenant and when they give up possession.

Your Situation

Given the court order and your acknowledgment of it, the landlord has the right to enforce the mesne profit claim. However, you can try to negotiate the amount with your landlord. If the mesne profit clause wasn’t explicitly stated in your tenancy agreement, you may have room for discussion.

Next Steps

1. Review your tenancy agreement : Check if the mesne profit clause is mentioned. If it’s not, you can use this as a basis for negotiation.

2. Negotiate with your landlord: Try to reach a mutually acceptable agreement on the mesne profit amount and daily rent.

3. Seek legal counsel : Consult with a lawyer to understand your options and the best course of action.

Conclusion

Understanding your rights and obligations as a tenant is crucial in resolving disputes with landlords. While the law supports the landlord’s claim in this case, negotiation and seeking legal advice can help you find a more favorable solution.

When someone owes money and the creditor involves the police, the situation can become stressful. The police might compel the debtor to write an agreement or undertaking to pay back the debt. But here’s the thing: such agreements are often not legally binding.

Why?

In many jurisdictions, police don’t have the authority to handle civil matters like debt disputes. Their primary role is to enforce criminal law. When it comes to debt, it’s typically a civil issue between two parties.

What does this mean?

If the police ask you to sign an agreement or undertaking regarding a debt, it’s essential to understand that:

The agreement might not be enforceable in court.
The police can’t use this agreement to force you to pay.
– If you don’t pay, the creditor might need to pursue other legal avenues, like going to court.

So, what’s the point?

In many cases, the agreement might be more of a gesture to appease the creditor or resolve the situation temporarily. It’s crucial to understand your rights and the limitations of police involvement in civil matters.

Takeaway

If you’re facing a debt dispute and the police get involved, know that any agreement you sign might not be binding. It’s always best to seek legal advice to understand your options and the best course of action.