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Senate empowers banks to recover loans without borrowers consent

Senate empowers banks to recover loans without borrowers consentThe Senate on Tuesday, passed for second reading, a bill to allow banks recover loans from defaulters, place them on watchlist and eventually blacklist them without recourse to the borrowers.

The bill sponsored by Senator Sani Musa, was seeking an Act to establish unified scheme for a sound financial system that would facilitate and improve credit repayment culture by empowering creditors bank to track loan defaulters.

Musa said the creditor banks would be able to do so through the means of the defaulters’ Bank Verification Number.

He said the bill would empower the creditor banks to recover the said loans from other accounts operated by the defaulters without recourse to the loan borrowers.

He also said the bill would provide penalties for breaches and violation of obligations and enhance loan recovery across banking sectors in Nigeria.

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