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Bank of Ghana Cracks Down on 97 Illegal Loan Apps – Beware!

BoG Ghana Cracks Down on Fake Loan Apps

Bank of Ghana raises alarm over 97 Illegal loan apps: Protect yourself from unregulated lenders!

The Bank of Ghana (BoG) has issued a cautionary statement to the public regarding the usage of 97 illegal mobile apps primarily found on the Google Play Store.

These apps have been offering loans without obtaining the necessary regulatory approval. Initially, the central bank had released a list of 19 such unlawful digital lenders. However, this action did not deter these 19 and numerous others from continuing their operations, as some unsuspecting Ghanaians still fell victim to their services.

In an official statement, the BoG emphasized, “Following the Bank of Ghana notice number BG/GOV/SEC/2022/10 concerning Unlicensed Entities Engaged in Lending, we have observed the continuous operations of unlicensed entities providing loans through mobile applications to the Ghanaian public. Such activities are in direct violation of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).

The BoG further highlighted that none of the 97 loan applications available on the market possess the necessary license or authorization from the Bank of Ghana.

The Bank emphasized that the activities of these entities violated customer data and privacy laws, as well as consumer protection requirements and norms, which had adverse implications for the well-being and integrity of their customers.

Illegal Digital Lenders

The illegal digital lenders engaged in practices such as capturing highly sensitive information from applicants’ mobile phones and contacting random individuals from the applicants’ contact list to inform them about the loan, using them as guarantors without their consent.

Furthermore, these lenders imposed exorbitant interest rates, sometimes as high as 80% within a two-week period. Some of them even disguised themselves under false names to register as merchants with regulated financial institutions, exploiting them for settlements. The Bank of Ghana assured that it would continue to collaborate with relevant state agencies to take action against these entities and safeguard the integrity of financial service delivery.

List of Illegal Loan Apps Below:

Call-to-Action

It is crucial for Ghanaians to remain vigilant and exercise caution when using loan apps and engaging in financial transactions. To protect personal data, privacy, and financial well-being, it is recommended to rely on licensed and regulated financial institutions. 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)

Stay informed about the latest updates from the Bank of Ghana and report any suspicious activities or unlicensed entities to the appropriate authorities. By working together, we can ensure a safer and more secure financial environment for all individuals in Ghana.

Conclusion

The Bank of Ghana (BoG) has taken significant steps to protect the interests of Ghanaians and ensure a secure financial environment in the country. Recognizing the importance of consumer protection and financial integrity, the BoG has implemented various measures and initiatives to safeguard the rights and well-being of individuals.

Furthermore, the BoG has shown a firm commitment to combating illegal and unlicensed financial activities. The recent cautionary statement against illegal loan apps is a testament to the central bank’s dedication to identifying and addressing potential risks to consumers. By alerting the public and collaborating with relevant state agencies, the BoG works tirelessly to disrupt the operations of these unscrupulous entities and protect Ghanaians from falling victim to their fraudulent practices.

Overall, the Bank of Ghana’s proactive approach, encompassing effective supervision, financial literacy initiatives, and crackdowns on illegal activities, demonstrates its commitment to safeguarding the interests and well-being of Ghanaians. By maintaining a strong regulatory framework and promoting financial education, the central bank strives to foster a secure and inclusive financial ecosystem for the benefit of all individuals in Ghana.

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