BoG cautions the public against transacting business with unauthorised loan entities
The Bank of Ghana (BoG) has cautioned the public to be wary of transacting business with some lending entities in the country.
According to the BoG, it has observed that some 97 entities were engaged in lending money through mobile applications but had no licence to do so.
The BoG in a notice issued in Accra yesterday to Licensed Financial Institutions and the general public, signed by the Secretary, Ms Sandra Thompson, said despite the BoG issued notices on the operations of such entities offering loans through mobile applications, such entities continue to operate without licence.
“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),” the BoG stated.
BoG mentioned some of the unlicensed entities as Flash Cash, GhLending, MoLoan, Rapidcedi, 100 Cedi, Cedi Help, Mascedi Consult, Cediboom, CashLoanPro, Aircash, Akwaaba Payment, Fourcredy, AcornCredit, Ghana Loan, Mach Loans Ghana, and Mbosea.
The others are Prime Loans, Easy Access Loans, Cashpal Online Loan, Happy Loan, Plus Loan, Mega Credit, Boing Cash, Koko Cash, Lemon Wallet, Loan Galaxy, Ukash, Funcash, Quick Cash, Kudi Credit, Soft Kash, TopCredit, CoolCash, Joy Cash, Sikakasa, and Eagle Cash.
“The Bank reiterates 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,” the statement said.
The BoG said it would continue to take action against those 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-Institutions and Payment Service Providers are cautioned not to facilitate the illegal transactions of unlicensed loan applications,” the BoG stressed.
The BoG encouraged the general public to patronise the various types of digital credit products approved by the BoG, and delivered by Banks and Specialised Deposit-Taking institutions in partnerships with mobile money operators.
“These loan facilities are accessed remotely 24/7 through mobile money wallets without the need for collateral and further, to adhere to the relevant consumer protection and data privacy laws,” the BoG, stressed.