Bank of Zambia Cautions Borrowers
By Linda Soko Tembo
The Bank of Zambia (BoZ) has raised alarm over the growing number of unlicenced online credit providers accused of predatory lending practices that exploit unsuspecting borrowers through unfair, deceptive, and sometimes fraudulent means.
In a statement, BoZ Assistant Director of Communications, Besnat Mwanza, explained that affected borrowers are often lured into taking unaffordable loans with unclear terms, leaving them exposed to serious financial harm.
Mwanza stressed that these online lenders operate outside the regulatory framework and are not bound by consumer protection standards.
“Consumers that engage with such entities expose themselves to significant financial and other risks because the usual consumer protection recourse mechanisms are not available to them in the event of disputes,” she said.
She revealed that the central bank is working with relevant authorities to take enforcement action against unlicenced credit providers. Mwanza further urged the public to avoid transacting with financial service providers that are not licenced.
“Due diligence is critical. We urge the public to verify the licensing status of financial service providers before engaging in any financial transactions,” she emphasised.
Mwanza added that all licenced financial institutions are required to comply with regulatory standards that promote consumer protection, transparency, and ethical business practices. A publicly accessible list of licenced financial service providers is available on the Bank of Zambia website.
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