The Bank of Ghana (BoG) has reiterated its commitment to cracking down on illegal lending apps that threaten individuals who default on loans.
According to the Central Bank, it is a criminal offense to intimidate defaulters by threatening to publish their photos and private information.
In recent times, this troubling practice has gained momentum, leading to tragic cases where some defaulters have been driven to suicide.
Speaking at the MTN Ghana Mobile Money @15 Fintech Stakeholders’ Forum, Kwame Oppong, Director of Fintech at the BoG, warned that the central bank will not tolerate unauthorized products that could destabilize the financial sector.
“Nothing should be introduced in this country that causes instability in the financial sector or risks the integrity of the economy. Moreover, nothing should be allowed that jeopardizes the livelihoods of individuals and businesses.”
Mr Oppong emphasized that it is unacceptable to threaten people simply because they have defaulted on loans.
“These illegal lending apps that humiliate borrowers by sharing their pictures online—just because they needed some financial assistance—must be stopped. People are being put on suicide watch because of these threats to publicly shame them for owing money,” he questioned.
He advised the public to exercise caution in online financial transactions, adding that the central bank is collaborating with relevant security agencies to apprehend the perpetrators.
“This is why the Bank of Ghana, in partnership with the Economic and Organised Crime Office (EOCO) and other security agencies, conducted a raid involving over 200 people, including foreigners,” he noted.
At the same event, Shaibu Haruna, Chief Executive of Mobile Money Limited, highlighted MTN’s ongoing efforts to implement safety measures and enhance education on mobile money fraud to build customer trust.
The MTN Mobile Money @15 Fintech Stakeholders’ Forum, themed “Building Trust and Cooperation Among Stakeholders: How to Maximize the Impact of Emerging Technologies for the Promotion of Financial Inclusion,” brought together key players in the financial technology sector to discuss the influence of emerging technologies on the financial landscape and explore ways to strengthen regulations to boost trust among users and stakeholders.
Source: Adomonline
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