BoG Warns Against Unlicensed Loan Apps

The Bank of Ghana (BoG) has raised alarm over some 97 unlicensed entities engaged in lending of loans through mobile applications to the public. The BoG in a circular to warn the public said the activities of all these unlicensed operators are also in contravention of the Banks and the Specialised Deposit-Taking Institutions Act, 2016 (Act 930). Revealing a list of suspected illegal entities the BoG stated that their activities significantly breach customer data and privacy laws, as well as consumer protection requirements and norms, with unfavourable implications on the integrity and wellbeing of patrons.

Some of the unlicensed loan apps include; Flash Cash, GhLending, Momo Cash loans, Prime Loans, Easy Access Loans, Rapidcedi, Happy Loan, Rapid Cedi, Cash Way, Agyenkwasika Personal Loan, Akwaaba Cash, Bloomcash, HelaCash, Sikakasa, Home Credit, MoLoan, New Loan Ghana, Cedi Wallet, Rapid Cedi, Sunny Cash/Sunny Loan.

Others are Cud Loan, Cash Wave, Fun Cash, Mbosea, Mach Ghana Loans, Ghana Loan, Loan Galaxy, Lemon Wallet, Fufucredit, Derive Cash, Koko Cash, Acorn Credit, Four Credy, PK Loans, Cedi Fie, Pro Kash, Pop Cash, Ultra Loan, Mike Cash Loan App, and Creditmall among others.

The statement signed by the Bank’s Secretary, Sandra Thompson, thus cautioned the public against doing business with all unlicensed loan providers while other banks specialised deposit-taking institutions and payment service providers were advised not to facilitate the illegal transactions of unlicensed loan applications.

The general public is encouraged 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. These loan facilities are accessed remotely 24/7 through mobile money wallets without the need for collateral, the release stated. BoG also advised the general public to consult the Bank’s website for the approved list of licensed institutions, before transacting any business with an institution.