BVN Blacklisting in Nigeria – Everything You Need to Know
When opening a bank account in Nigeria and taking loans, it is important to repay all incurred debts to avoid blacklisting your BVN. This post provides information on BVN and how to check if your bank verification number has been blacklisted.
Introduction
A Bank Verification Number (BVN) is a unique 11-digit number assigned to all Nigerian citizens carrying out financial transactions in the country. It is linked to their biometric data and serves as a virtual ID to access their bank account. Verifying the identity of account holders is a key way BVN helps to combat fraud and enhance the security of financial transactions.
It is essential to check the BVN status before undertaking any financial transactions in Nigeria. If the BVN is blacklisted, the account holder cannot make any transactions using the bank account. A blacklisted BVN will also prevent the account holder from taking any loans from the bank and may even prevent them from securing a job or leaving Nigeria.
BVN can be blacklisted due to various reasons such as fraudulent activities, non-repayment of debts, or non-compliance with regulations. To prevent BVN from getting blacklisted, account holders must ensure that they comply with regulations and maintain good financial behavior.
Account holders can check their BVN status and whether it is blacklisted by visiting the official BVN portal or contacting their bank. It is crucial to keep track of the BVN status and take necessary measures to prevent any issues.
What is a BVN?
A BVN is a unique identifier assigned to all bank account holders in Nigeria. Banks use it to prevent money laundering and combat fraudulent activities. If your BVN number is blacklisted, it means that your bank has flagged your account for suspicious activity, which could range from terrorist financing to money laundering.
There are various reasons why the Central Bank of Nigeria (CBN) may blacklist your BVN. One could be due to non-payment of financial debts within the given timeframe or acquiring negative credit in your account. For instance, if you fail to repay a loan from a Nigerian bank, your BVN may be blacklisted.
BVN blacklisting helps to reduce illegal banking transactions and enhances national financial intelligence. It also enables the Nigerian government to protect bank account holders’ interests and boost their confidence in the banking system, enhancing the financial standing of Nigerian financial institutions.
Customers are more likely to opt for banking services when assured of safe transactions. Therefore, a bank verification number provides many opportunities to safeguard the financial system.
What is Blacklisting?
Once your bank verification number is blacklisted, you will not have any control over your finances. This can occur due to several instances; however, the most common cause of blacklisting is loan default. Now you may wonder, “How to know if your BVN is blacklisted in Nigeria?”
The best way to check if a person is blacklisted is to analyze the database, as it contains the bank verification numbers blacklisted in Nigeria. To obtain it, you can visit the official website of the National Identity Management Commission.
Most people believe that bureau databases have the names of those who are blacklisted. However, this is different 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.
If your bank verification number is on the list of blacklisted BVNs in Nigeria, do not fret, as there are several ways you can get it back. Before we move on and tell you how you can get back your BVN online, you must learn why it may get blacklisted.
Why Can Your BVN Be Blacklisted?
Your bank verification number can be blacklisted due to various reasons. If you are involved in suspicious activities or have not paid your loan, your BVN may be blacklisted.
The following are key reasons why BVNs get blacklisted:
- Failing To Repay The Loan: This is one of the common reasons for a BVN getting blacklisted. If you default on your loan because of one reason or another, the financial institution will add your bank verification number to the blacklist.
- Even if you pay the due amount within days or weeks of the due date, it will affect your credit history and leave you prone to blacklisting.
- Standing as the Guarantor Defaulter: If you volunteer as the guarantor for someone who hasn’t repaid their loan, it will also affect you negatively. You will be held liable and may only secure a loan once they have cleared their pending loans. It would be best if you did not become the guarantor for someone unsure whether they can repay their debt timely.
- Someone Else Utilising Your Banking Details To Borrow: If you fail to safeguard your personal information, criminals can steal your details and use them to obtain loans by masquerading as you. Consequently, you may end up being blacklisted without any fault of yours.
- Issuing Dud Cheques: You can get in trouble by issuing a dud cheque for your account. It is important to note that issuing a cheque for an amount higher than what is available in your bank account can have serious consequences. This can lead to your BVN (Bank Verification Number) being blacklisted, which can negatively impact your financial transactions.
- Additionally, it is possible that this action may be considered fraudulent and illegal and can potentially result in legal consequences such as getting arrested. Therefore, it is important always to ensure that you have sufficient funds in your account before issuing a cheque.
- If the CBN Puts You On Watchlist: The Central Bank Of Nigeria monitors all bank accounts. You may be on the watchlist once the account transactions are breached or suspicious money enters your account. If the CBN has enough reasons to believe that your account is used for unlawful transactions, it may put your BVN on the blacklist.
The Consequences Of Having A Blacklisted BVN
When your bank verification number is blacklisted, it can cause serious repercussions. The following are the ramifications of your bank verification number getting blacklisted.
Inability To Acquire Loan
The most major BVN blacklisting consequence is that you cannot apply for more loans from regulated lenders.
Genuine lenders perform a background check before sanctioning the loan.
Your loan application will be rejected if they find out that your BVN is blacklisted. In this case, you may have to apply for a loan from someone considered a loan shark. They usually charge a high-interest rate.
Affects Your Chances Of Securing A Job
Some leading companies in Nigeria perform background checks and assess your credit history before hiring you. If your BVN is blacklisted, it will increase your chances of rejection.
These background checks are done privately without letting the applicant know; if applicants have negative credit, their resume may get denied without citing any cause.
Foreign Travel Might Become a Distant Dream
Obtaining visas is becoming more challenging with each passing day. One mandatory demand for visa approval is having a clear financial record. So, if your BVN is blacklisted, your application for a visa may get rejected.
Embassies favor applicants who are serious about their financial responsibilities. This ensures that the applicant does not become a burden to the country they enter.
If your BNV is blacklisted, the visa process may not go as smoothly until your financial records become normal again.
Some Nigerian government benefits require an excellent credit score, but having a blacklisted BVN can make it challenging to qualify for them. To find out if your BVN is blacklisted, you can request a credit analysis from a credit reporting company in Nigeria.
CreditConnection is a reliable and free platform for obtaining credit reports. Other credit companies may charge between 1000 Naira and 8000 Naira for each report, and you may need to open an account to seek out the report. If your BVN is blacklisted, don’t worry. There are steps you can take to remove it from the blacklist.
Step 1: Apply For a Credit Report
To retrieve your BVN, the first step is to forward a request to the credit reporting company in Nigeria. The credit analysis report will provide reasons for the BVN blacklisting, information on your bank accounts, and details about the disputed amount.
However, the credit report may not contain your financial details if you have an unregulated bank account since only regulated banks’ details are captured.
Step 2: Repay Your Pending Debts
After receiving your credit analysis report, paying off any outstanding debts is important. Additionally, you should contact your bank or loan provider to select the most appropriate repayment plan.
To ease the process, you can also go for automatic payment and free yourself from the hassle of remembering when to pay.
If you struggle to repay your loan, you can discuss an alternative and affordable repayment plan with your credit institution. Once you agree on a repayment plan, you should follow it consistently.
Pay at the given time and stick to the schedule until all your debts are cleared.
Step 3: Acquire a Clearance Report or Debt-Free Issuance Letter From the Lender
Once you have paid off all your debts, obtaining a non-indebtedness letter and sending it to your credit company for verification are important. The credit bureau will then conduct an independent investigation and work with your bank to remove your name from the list of debtors.
This is a crucial step, as credit scores are often used to determine creditworthiness in developed countries. In Nigeria, the government also monitors credit bureaus to assess the creditworthiness of its citizens.
Step 4: Connect With the Credit Bureau
Once you have cleared your outstanding debt, the lender will automatically work with the credit reporting agency to update your financial details. Alternatively, you can manually send your application to the bureau or contact them via phone or email to update your financial information.
When submitting your application, include your BVN, name, phone number, payment evidence, and gender. It may take a few days for your profile to be updated and for your BVN to be removed from the blacklist.
It’s important to note that most banks use credit bureaus to assess their risk when considering loan applications.
When there is negative information on your credit report, the probability of your loan application getting approved decreases.
Therefore, checking your credit report annually ensures no errors or inaccuracies.
Your credit report provides valuable insight into your credit history. You are entitled to one free credit report per year, so take advantage of this opportunity to familiarize yourself with the process and keep your credit score in check.
It’s important to take certain precautions to prevent your BVN from being blacklisted. These are some of the methods and practices you should follow:
– Never disclose your bank verification number to anyone.
– Keep your BVN confidential and don’t share any information related to it.
– Memorize your BVN to avoid any difficulty while entering it during transactions.
– Always ensure you enter the correct bank verification number when making transactions.
– Be cautious when receiving calls from anyone requesting your BVN information, as they may be scammers.
– Regularly check your bank account and report any associated fraudulent activities.
- – Use a strong password and antivirus software on your mobile device to prevent hackers from accessing your personal information.
How Do I Check If My BVN Is Blacklisted?
If you’re wondering how to find out whether your BVN is blacklisted in Nigeria, you can apply for a credit report.
This is particularly useful if you suspect that loan defaults are why your BVN has been blacklisted. Your BVN can be blacklisted without your knowledge, especially if you default on a loan.
There’s a database of people whose BVNs are blacklisted because they’ve failed to repay their loans. Lenders refer to this database before approving loan applications. Your credit report is one of the primary criteria lenders use to determine whether you’re suitable and eligible for a loan.
Your credit score is an important factor in determining your eligibility for a loan. Having a high credit score enhances the likelihood of getting approved. However, if your BVN has been blacklisted due to default on a loan, you may not qualify for any loan, even if you have a good credit score.
You can check whether your BVN has been blacklisted or not online or by dialing a specific code on your mobile phone. Here are the steps to follow for each method:
Online – To check your BVN status online, log in to your internet banking portal. Your BVN will be displayed on the first page if it is active.
9mobile – To check your BVN status through 9mobile, dial *565*0# on your mobile phone.
Airtel – To check your BVN status through Airtel, dial *565*0# on your mobile phone.
Glo – To check your BVN status through Glo, dial *565*0# on your mobile phone.
- MTN – To check your BVN status through MTN, dial *565*0# on your mobile phone.
Can A Loan App Blacklist BVNs?
Loan companies and loan apps have the power to blacklist your BVN if you default on your loan payments or fail to follow the repayment plan provided by the lender. The Central Bank Of Nigeria has authorized all regulated financial, credit establishments, and loan providers to act against defaulters.
These institutions, including loan apps and banks, can pursue cases against customers who don’t adhere to the repayment schedule of their loans. Loan apps typically flag loan defaulters by submitting a report to the bureau, which will then investigate the matter to verify the report’s authenticity.
The defaulter’s details will be added to the Nigerian bureau’s database if the report is true.
If you find yourself on a blacklist because of your BVN, loan applications from credit-giving companies and financial institutions will be rejected, so it is important to ensure that you repay your debts promptly and maintain a good credit score.
Conclusion
This guide elaborates on the process of checking whether your BVN has been blacklisted or not. It is necessary to check if a person is blacklisted in case they cannot secure a loan or frequently gets rejected from job opportunities.
Make sure to repay all your debts on time and avoid loan defaults, or else credit-giving companies may report you to the credit bureau, which can get your BVN blacklisted.
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FAQs
If your BVN (Bank Verification Number) gets blocked, you could lose access to your financial assets. Your bank account would be frozen, and you could not make any transactions or payments. However, you can remove your BVN from the blacklist by following these steps:
1. Pay your debts: If you have defaulted on your loans, it may be the primary reason for your BVN getting blacklisted. Clear all your debts and repay your loans.
2. Connect with the Credit Bureau: You can contact the bureau via phone or email. When filling out your application, kindly provide your full name, mobile number, Bank Verification Number (BVN), proof of payment, and gender information. This will ensure that your application is complete and processed without any delays.