In an effort to protect the interest of Ghanaian consumers and promote financial integrity, the Ghana Fintech and Payment Association (GFPA) has issued a strong warning against using financial products and services offered by unlicensed and illegal mobile lending enterprises.
This warning follows the Bank of Ghana’s second notice, which specifically warned the public against borrowing money from the staggering 97 unlicensed entities operating through mobile money platforms.
The GFPA, an association devoted to supporting innovation in the field of financial technology, vehemently opposed these unlawful lending practices.
Citing exorbitant interest rates, frequently surpassing an alarming 100% per annum, the association aptly characterized the activities of these illicit businesses as fraudulent.
In an official statement released, the GFPA urged its members, as well as all other payments service providers, to refrain from facilitating the operations of these unlicensed actors by denying them access to their esteemed payment gateways.
By strategically positioning themselves as intermediaries in the financial ecosystem, GFPA play a vital role in ensuring the integrity and legitimacy of transactions. Their steadfast commitment to combating financial malpractice is evident as they align their efforts with the Bank of Ghana, the regulatory body overseeing lending activities, as well as other pertinent state agencies.
The GFPA noted its partnership with the Bank of Ghana, highlighting their shared goal of curbing the proliferation of these unscrupulous practices and safeguarding the interests of consumers.
By actively working together, GFPA disclosed its intention to create stable and safe digital financial environment with the BoG, where people may confidently obtain financial services from legally recognized institutions without worrying about falling for shady tricks.
GFPA Set To Curb Financial Fraud With BoG’s Partnership
More so, according to GFPA, with the rapid expansion of financial technology and the ease of access to digital services, it becomes increasingly crucial for consumers to be discerning and selective in their choice of financial partners.
The ramifications of falling prey to unlicensed mobile loan businesses, as stated by GFPA, can be severe, resulting in crippling debt burdens and irreparable damage to individuals’ financial well-being.
Thus, the GFPA’s proactive stance in raising awareness about these unscrupulous entities provides much-needed protection for consumers, shielding them from the perils of extortionate interest rates and deceitful practices.
This collaborative effort between the GFPA and the Bank of Ghana underscores the significance of a multi-faceted approach to tackle such challenges effectively.
By leveraging their expertise, industry knowledge, and regulatory frameworks, they aim to eradicate the menace posed by unlicensed mobile loan businesses, thereby preserving the sanctity of Ghana’s financial sector.