The Bank of Ghana (BoG) has announced plans to intensify its crackdown on illegal lending apps operating in the country.
Head of Fintech and Innovation at the BoG, Kwame Oppong stated that the operators of those unauthorised apps pose a significant threat to consumers and the financial sector.
According to him, the illegal lending apps collect personal information and photos of users as soon as they sign up, and when borrowers default on their loans, the apps use the information collected to threaten and intimidate the borrowers.
He revealed that there have been instances where borrowers, unable to cope with the harassment, have resorted to suicide.
Speaking at the MoMo@15 Fintech Stakeholders’ Forum, organized by MobileMoney Limited (MTN MoMo), Kwame Oppong made it clear that the Bank of Ghana will not tolerate unauthorised products that destabilise the financial sector.
He stressed that threatening to expose photos and publish other confidential data of borrowers is illegal and that the central bank will continue its efforts to clamp down on these predatory apps.
“These actions are not only unethical but also illegal. We will not allow unauthorised lending apps to take advantage of people and disrupt the financial system,” he said.
The Bank of Ghana’s commitment to tackling these illegal lending apps is part of a broader effort to protect consumers and ensure a stable and secure financial environment in Ghana.
