The Bank of Ghana (BoG) is cautioning the public against patronizing the services of some 97 illegal mobile apps mainly on Google Play Store which offer loans without regulatory approval.
The central bank had earlier published a list of 19 of such illegal digital lenders, but that does not seem to have deterred those 19 and scores more from operating, since some gullible Ghanaians continue to patronize them.
In a statement, the BoG said “Further to Bank of Ghana notice number BG/GOV/SEC/2022/10 on Unlicensed Entities Engaged in Lending, the Bank has observed the persistent operation of unlicensed entities that are engaged in the provision of loans through mobile applications to the Ghanaian public, in contravention of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).”
It noted that none of the 97 loan applications offered on the market have a license or authorisation from Bank of Ghana.
The Bank reiterated that the activities of these entities significantly breach customer data and privacy laws, as well as consumer protection requirements and norms, with unfavourable implications on the integrity and wellbeing of their patrons.
What BoG is referring to is the practice by those illegal digital lenders where they capture very private details from the mobile phones of applicants and also use unconventional means such as reaching out to random person’s in the applicants contact list to inform them that the applicant took a loan and used them as guarantors.
The digital lenders also charge ridiculous interests of up to 80% in two weeks, in some instances.
Some of them hide behind pseudo names to sign on to regulated financial institutions as merchants so they can use those institutions for settlements.
BoG said it will continue to take action against these entities in collaboration with relevant state agencies to promote the integrity of financial service delivery.
The general public is therefore advised to desist from doing business with all unlicensed loan providers. Banks, Specialised Deposit-Taking Institutions and Payment Service Providers are cautioned not to facilitate the illegal transactions of unlicensed loan applications,” it said.
The Central Bank also encouraged Ghanaians to patronise the various types of digital credit products approved by Bank of Ghana and delivered by banks and specialised deposit-taking institutions in partnership with mobile money operators.
It said the approved loan facilities are accessed remotely 24/7 through mobile money wallets without the need for collateral.
The general public is advised to consult the Bank’s website using the link below for the approved list of licensed institutions, before transacting any business with an institution.
The Bank of Ghana (BoG) is cautioning the public against patronizing the services of some 97 illegal mobile apps mainly on Google Play Store which offer loans without regulatory approval.
The central bank had earlier published a list of 19 of such illegal digital lenders, but that does not seem to have deterred those 19 and scores more from operating, since some gullible Ghanaians continue to patronize them.
In a statement, the BoG said “Further to Bank of Ghana notice number BG/GOV/SEC/2022/10 on Unlicensed Entities Engaged in Lending, the Bank has observed the persistent operation of unlicensed entities that are engaged in the provision of loans through mobile applications to the Ghanaian public, in contravention of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).”
It noted that none of the 97 loan applications offered on the market have a license or authorisation from Bank of Ghana.
The Bank reiterated that the activities of these entities significantly breach customer data and privacy laws, as well as consumer protection requirements and norms, with unfavourable implications on the integrity and wellbeing of their patrons.
What BoG is referring to is the practice by those illegal digital lenders where they capture very private details from the mobile phones of applicants and also use unconventional means such as reaching out to random person’s in the applicants contact list to inform them that the applicant took a loan and used them as guarantors.
The digital lenders also charge ridiculous interests of up to 80% in two weeks, in some instances.
Some of them hide behind pseudo names to sign on to regulated financial institutions as merchants so they can use those institutions for settlements.
BoG said it will continue to take action against these entities in collaboration with relevant state agencies to promote the integrity of financial service delivery.
“The general public is therefore advised to desist from doing business with all unlicensed loan providers. Banks, Specialised Deposit-Taking Institutions and Payment Service Providers are cautioned not to facilitate the illegal transactions of unlicensed loan applications,” it said.
The Central Bank also encouraged Ghanaians to patronise the various types of digital credit products approved by Bank of Ghana and delivered by banks and specialised deposit-taking institutions in partnership with mobile money operators.
It said the approved loan facilities are accessed remotely 24/7 through mobile money wallets without the need for collateral.
“The general public is advised to consult the Bank’s website using the link below for the approved list of licensed institutions, before transacting any business with an institution. All Institutions – Bank of Ghana (bog.gov.gh)
Find the list of 97 illegal digital lending app below:
