Dr. Mark Tampuri, the president of Ghana Fintech Academic Network and a respected finance lecturer, has drawn attention to the alarming consumer protection concerns surrounding the proliferation of unregulated online loan apps engaging in predatory lending practices.

His research presentation at the prestigious RegTech Africa Conference, held between May 24 and May 26, 2023 at Oriental Hotel, Lagos, Accra, brought together key stakeholders from the financial sector, including central banks, financial institutions, Fintech companies, and industry experts.

It is believed that Dr. Tampuri's insights have influenced the recent warning issued by the Bank of Ghana (BoG) on June 14th, 2023, cautioning individuals against the risks associated with these unscrupulous loan apps
.
During a follow-up telephone interview, Dr. Tampuri shed light on the predatory nature of these unregulated loan apps, highlighting their ability to operate beyond the confines of regulatory oversight. One significant concern is the unrestricted access these apps have to borrowers' data, which is often sold to third-party entities. Even more distressing is their ability to track users'
precise locations, posing substantial threats to privacy and security.

Numerous individuals have come forward, sharing harrowing experiences related to these loan apps. Reports include instances of public shaming aimed at defaulters, as well as aggressive harassment tactics directed at borrowers' friends and family.

Dr. Tampuri expressed his deep concern, stating, "Through my research, I discovered that two out of ten loan apps would unexpectedly credit users with small amounts, even without any request for a loan. However, these apps would later impose exorbitant fees and interest rates. Borrowers often face annual
interest rates of up to 500% or monthly rates as high as 40".

In light of these pressing issues, Dr. Tampuri emphatically called for collaboration between the Bank of Ghana and the digital marketplace or platform, urging them to swiftly remove these illegal loan apps from their platforms.

He also emphasised the importance of working closely with participants in Ghana's payment systems, encouraging them to report any suspicious transactions related to these unregulated loan apps. Dr. Tampuri stressed the need to identify and hold accountable those responsible for facilitating these operations through Ghana's payment infrastructure.

Furthermore, Dr. Tampuri offered valuable advice to the public, cautioning individuals to exercise caution when dealing with loans offering excessively high-interest rates. He emphasised the importance of making informed financial decisions and seeking reputable, regulated lending options.

Addressing the prevalent predatory lending practices displayed by these unregulated loan apps demands immediate action. Protecting consumers' interests and ensuring their financial well- being should remain a top priority as Ghana's financial landscape continues to evolve.

By proactively addressing these concerns and fostering collaboration among relevant stakeholders, the Bank of Ghana can effectively shield individuals from exploitative financial practices, thereby cultivating a secure and trustworthy financial environment.