The Bank of Ghana (BoG) has stepped up its efforts to combat illegal lending apps that have been using threatening tactics against loan defaulters, aiming to safeguard the integrity of the financial sector.
The central bank has made it clear that it is a criminal offense for these apps to intimidate borrowers by threatening to expose their personal data and photographs—a disturbing practice that has, in some cases, led to tragic consequences, including suicides.
During the MTN Ghana Mobile Money @15 Fintech Stakeholders’ Forum, Kwame Oppong, Director of Fintech at the BoG, issued a strong warning that the central bank will not tolerate unauthorized financial products that jeopardize the stability of the financial system.
“Nothing should be introduced in this country that causes instability in the financial sector and puts the integrity of the economy at risk. Secondly, nothing should come into the country that endangers the livelihoods of individuals and businesses,” Oppong emphasized.
He condemned the predatory practices of certain digital lenders, particularly those that resort to public shaming as a method of debt collection.
“It is unthinkable to threaten people because they have defaulted on loans. Those illegal lending apps that share borrowers’ pictures online—how is this a way to do business? It is unacceptable to push people to the brink by threatening to expose them publicly,” Oppong remarked.
The BoG, in collaboration with the Economic and Organised Crime Office (EOCO) and other security agencies, has already taken decisive action, conducting a series of raids that resulted in the arrest of over 200 individuals, including foreign nationals, involved in these illegal activities.
At the same event, Shaibu Haruna, Chief Executive of Mobile Money Limited, reaffirmed MTN’s commitment to strengthening safety measures and expanding public education on mobile money fraud to enhance 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 industry players to discuss the role of emerging technologies in the financial sector and explore ways to strengthen regulatory frameworks to build trust among users and stakeholders.
