When you open a bank account in Nigeria to take loans, it is important to pay back all your debts or your BVN will get blacklisted. We are guessing you might be wondering what it means for your BVN to be blacklisted, well, keep reading to learn all you need to know about BVN and how to know if your BVN has been blacklisted or not.
For those who do not know, your BVN is an 11-digit unique number that serves as your virtual identity as you interact with Nigerian financial institutions home and abroad. Your BVN is connected to your biometric data which means you can only have one BVN. It is possible for your BVN to get blacklisted if your run into trouble or engage in a financial misconduct.
The danger of your BVN getting blacklisted is that you will not be able to access loans. It can prevent you from getting a job or even travelling outside the country.
What is Bvn?
All Nigerian bank account holders are given a BVN as a unique identification. The aim is for banks to use the BVN number to prevent money laundering and fight fraud.
A blacklisted BVN number means that your financial institution has identified and linked your bank account with questionable behavior. You are aware that criminal activity can take many different forms, from money laundering to supporting terrorism.
You could also be blacklisted by the Central Bank of Nigeria (CBN) if you have negative bank account credit or have not paid your debts within the specified time frame. As a result, if you obtain a loan from a Nigerian bank and do not pay it back, your bank verification number can be blacklisted.
The likelihood of fraudulent banking transactions is decreased by BVN blacklisting. Additionally, it advances and improves national financial intelligence. It gives the Nigerian government the ability to safeguard the financial interests of account holders and increase their trust in the banking system, both of which improves the financial position of Nigerian financial institutions.
When customers are given the certainty of secure transactions, they are more likely to choose financial services. A bank verification number provides numerous opportunities to safeguard the entire financial system.
What is Blacklisting?
You won’t have any access over your finances after your bank verification number is backlisted. A lot of things can cause this, the most frequent is a loan default. You might be wondering right now “how to know if your BVN is blacklisted in Nigeria?”
By analyzing the database, which contains the bank verification numbers blacklisted in Nigeria. This is the most effective approach to determine if a person is on a list. You can do this by going to the National Identity Management Commission’s official website.
The majority of individuals think that the names of persons on the blacklist are in bureau databases. This is not the case in Nigeria. Nigerian credit bureaus preserve information and details about companies and people with credit histories as they have access to credit facilities and services.
Do not worry if your bank verification number is on Nigeria’s blacklist of BVNs; there are various ways to recover it. You must understand why your BVN can be blacklisted before we proceed and explain how to get it online.
Why Can Your Bvn Be Blacklisted?
There are so many reasons as to why your bank verification number can get blacklisted. For instance, if you are reported for suspicious activities or haven’t repaid your loan, your BVN may get blacklisted.
Here are some reasons why BVNs get blacklisted:
- Failure to repay loans: This is among the frequent causes of BVN blacklisting. Your bank verification number will be added to a blacklist by the financial institution if you are in default on your loan. Even if you pay the amount owed within a few days or weeks before the due date, it will still have an impact on your credit history and make you vulnerable to being placed on a blacklist.
- Standing as a guarantor for the defaulter: If you agree to serve as the guarantor for someone who hasn’t paid back their loan just be sure that it will end up in premium tears. Until they have paid off their outstanding loans, you will be responsible and cannot obtain new loans. You shouldn’t agree to serve as the debtor’s guarantor if you have any doubts about their ability to make regular payments on their obligation.
- Someone else making use of your bank details to access loans: When you don’t protect your personal information, fraudsters can hijack your personal details and use them to secure loans by pretending to be you. Hence, you can get blacklisted without doing anything wrong.
- Issuing Dud cheques: Issuing a dud cheque for your account is a big offense. Not only will it leave your BVN on the blacklist, but it can potentially get you arrested. Issuing the cheque for an amount higher than your actual bank amount is not a good idea.
The Consequences of Having a Blacklisted Bvn
Inability to acquire further loans: The most significant BVN blacklisting repercussion is being prohibited from applying for additional loans from licensed lenders.
Before authorizing the loan, reputable lenders run a background check. If they learn that your BVN is blacklisted, they will refuse your loan application. In this situation, you might have to turn to requesting a loan from a so-called loan shark. They frequently impose hefty interest rates.
Lack of Access To Some Government Benefits: Some government benefits will need you to have an excellent credit score. However, a blacklisted BVN will affect your chances of getting such benefits as this gets in the way of your credit score.
How to Know if Your Bvn is Blacklisted in Nigeria
To know whether your BVN is blacklisted, you can send a request for credit analysis to any credit reporting company in Nigeria. Once you send the request, the company will provide you with the bank account details, the amount your account has, and your BVN status online.
It is recommended to use ‘CreditConnection‘ to request credit reports online since it is a reliable and free platform to obtain credit reports. In contrast, other credit reporting firms may charge you to provide the information.
When you request reports from a credit reporting company, you may have to pay between 1000 Naira and 8000 Naira for each report. Additionally, you may have to open an account to seek out the report.
How Can I Get My Bvn Removed From the Blacklist?
Do be scared if your bank verification number is blacklisted. With the following steps, you can remove your BVN from the blacklist:
Apply For a Credit Report
The initial step to getting your BVN back is sending a request to Nigeria’s credit reporting company. The credit analysis report will explain why your BVN was blacklisted, your owned bank account, and details of the disputed amount.
However, your financial details may not show in the credit report if you have an unregulated bank account since only regulated banks’ details are captured.
Repay Your Pending Debts
After getting your credit analysis report, you should repay all your pending debts. This is an important role in clearing your name. You should also connect with your banking institution or loan provider and opt for the most appropriate repayment plan for yourself.
To ease the process, you can initiate an automatic payment and free yourself from the hassle of remembering when to pay.
If you are serious about repaying the loan, you can have a meeting with the credit institution and request them to offer you an affordable repayment plan.
After choosing the right repayment plan, follow it and keep up with the plan.
- Acquire a Clearance Report or Debt-Free Issuance Letter From the Lender
After clearing all your debts, you should get a non-indebtedness letter and send it to your credit company for verification. The credit bureau will investigate independently and coordinate with your bank to remove your name from the list of debtors.
This is a crucial step since developed countries use credit scores to determine creditworthiness. Moreover, the Nigerian government also keeps an eye on the credit bureaus to check their citizens’ creditworthiness.
Connect With the Credit Bureau
After settling your pending debt, the lender will work with the credit reporting company and update the details. However, this is an automatic process.
Alternatively, you can send your application to the bureau and they will help you update the financial details. You can also connect with the bureau via phone or email.
You should have your BVN, name, phone number, payment evidence, and gender on your application. It may take several days for your profile to become updated and pull your BVN out of the blacklist.
Most banks calculate their risks based on the information offered by credit bureaus. In case there is any negative information on your credit report, your credit requests are likely to get rejected. This showcases the significance of checking your credit report each year.
Your credit report will offer valuable information regarding your credit history. Once every year, you can check your credit report for free, so you should benefit from this opportunity and get more familiar with the process.
How Do I Check if My Bvn is Blacklisted?
To check whether your BVN is blacklisted or not, follow the steps given below:
- Online – You can check BVN online by logging in to your internet banking portal. If your BVN is active, it will be displayed on the first page.
- 9mobile – To check BVN through 9mobile, dial *565*0#
- Airtel – To check BVN through Airtel, dial *565*0#
- Glo – To check BVN through Glo, dial *565*0#
- MTN – To check BVN through MTN, dial *565*0#
Frequently Asked Questions
What happens when your BVN gets blocked?
When your BVN is blocked, you will be deprived of your financial assets, your bank account will get frozen along with the amount in it, and you cannot make any payments or transactions.
How do I remove my BVN from the blacklist?
To get your BVN back, you can do the following:
- Pay Your Debts: The primary cause of your BVN getting blacklisted may be due to loan defaults. You should clear and repay all your loans and debts.
- Connect With the Credit Bureau: You can connect with the bureau through phone and email. Your application should contain your full name, mobile number, BVN, payment evidence, and gender.
How to check online if I am blacklisted in Nigeria?
To check your BVN online, you can visit the Central Bank of Nigeria’s official website and check the list of blacklisted people. Alternatively, you can contact your bank and ask them for a BVN check to see whether you are blacklisted
We believe we have being able to show you how to know if your BVN is blacklisted in Nigeria and how you can go about getting it removed. Has your BVN being blacklisted before please share your experience with us and how you were able to go about it in the comment session.