Harassment Cases Of Borrowers By Digital Lenders Decline By 75%

The Office of Data Protection Commissioner (ODPC) and the Digital Financial Services Association of Kenya (DFSAK) have joined forces in curbing cases of harassment and debt shaming by digital lenders.

Speaking in Nairobi during the DFSAK digital credit breakfast, Data Protection Commissioner Immaculate Kassait said that there has been a drastic decline in the complaints against financial service providers, since the introduction of a regulatory framework by the Central Bank of Kenya (CBK) two years ago.

She said that due to the growing adoption and use of technology based innovation, financial services have undergone radical digital transformation over recent years.

“New technology innovation created new business model application processes and products are largely responsible for these transformations,” she said.

Kassait highlighted that the emerging issues in adoption of new technology in the financial sector included increased collection of personal data to get access to services and increased automated process using AI and machine learning among others.

“The office has established a record of all processing operations undertaken by the digital credit providers and the lawful basis for each,” she noted.

The Commissioner also said that her office would continue having more training on matters concerning data protection, adding that they were planning on going to mashinani the coming year and create massive awareness on data protection.

DFSAK Chairman Kevin Mutiso said that they have been working in collaboration with the ODPC to ensure customer protection by coming up with guidance notes.

Mutiso added that this has helped digital lenders to be more compliant reducing the numbers of complaints against the lenders.

He noted that the practice of debt shaming is nearly eradicated and warned those who continued to harass customers to do so at their own peril.