When Olumide Joseph, an Ibadan-based account officer, repaid a N5,000 loan he took from Palm Credit, an online loan app, he had no idea he would be compelled to take another.

Joseph told FIJ that he had repaid the first on December 4, four days before the deadline.

“I am familiar with Palm Credit and have an excellent loan record with them. On December 4, around 10 pm, I repaid an existing loan which was to be due four days later,” Joseph told FIJ.

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“The following morning, I woke up to a loan credit of N70,000 from Palm Credit. They said I would repay N90,500 and it had to be done within 28 days.”

Joseph said when he called Palm Credit’s customer care to complain about the unauthorised disbursement, his requests were not attended to by the customer representatives.

“I attempted to call the customer care representative to complain about the disbursement, but they kept evading me,” he said.

“Eventually, one of them said I should have returned the money within 24 hours, which I had tried to do.

“She then told me to use the money and pay back at the stipulated time.

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“Where would I get such an amount from? The highest sum I have ever borrowed from Palm Credit is N22,000. Now, they are threatening to defame me if I don’t pay.”

FIJ emailed Palm Credit for comments on the unauthorised loan but got no response at press time.