The Digital Lenders Association of Kenya (DLAK) has distanced itself from two online credit operators, Opesa and Okash’s poor debt-shaming practices of debt collection.
Okash, and Opesa which are among the numerous Loan apps in Kenya have been put on the spotlight after beeing accused by their clients of malpractices including; sharing personal details with others and reaching out to contacts on the customer’s phone book to try and get them to pay back a loan.
Digital lending apps are currently not regulated in the Country. However, Central Bank of Kenya (CBK) has over the years released directives on what needs to be done to tame the excesses of the lending apps. Early this year, CBK and the National Treasury announced that they are working on regulations to tame predatory lending apps.
The association has condemned the illegal and morally questionable buhaviour and urged the two lenders to improve their debt collections approach towards more ethical business practices.
“Not only does this behavior go against Kenyan data protection laws, but it reeks of indignity. By reaching out to a customer’s contact list, Opesa and Okash rob the individual of basic dignity and consumer rights. This can have long term effects on their psychological well-being and damage relations that may have taken years to build” said DLAK Chairman Robert Masinde on behalf of all members.