Bank of Ghana warns debtors of mobile money loans of impact on their credit reports

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  • The Bank of Ghana has decided to warn debtors of mobile money loans that they risk irreparable damage to their creditworthiness if they do not repay
  • The central bank said people in front of Quickloan and XpressLoan risked being caught in a database that would make it difficult for them to access other loan facilities.
  • The BoG warning follows concerns that many Ghanaians have reduced their mobile money transactions due to the E-Levy

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The Bank of Ghana (BoG) has warned people who default on a mobile money loan to repay before their credit information enters a national database.

The central bank said in a statement that future attempts by defaulters of Quickloan, XpressLoan and AhomkaLoan to secure a loan could prove disheartening if they failed to repay.

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“Failure to repay these loans will negatively impact borrowers’ credit reports and could subsequently adversely affect any chance of obtaining loan facilities from other financial institutions and credit providers in the future” , the statement said.

mobile money Ghana
Governor of the Bank of Ghana, Dr Ernest Addison. Source: UGC/Bank of Ghana
Source: UGC

The Bank of Ghana has also advised borrowers who have thrown away their SIM cards to contact their respective telecom service providers or lenders to discuss repayment terms to avoid adverse information on their credit reports.

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The statement said misinformation about these defaulters could even deny them access to future credit facilities.

IMANI Ghana Survey Reveals Majority of Ghanaians Have Reduced Mobile Money Transaction Volume

YEN.com.gh reported in a separate article that a survey by think tank IMANI Center for Policy and Education found that 83% or 8 out of 10 Ghanaians have reduced their volume of mobile money transactions since the implementation of the e-tax on May 1, 2022.

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The study conducted in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) also suggests that many Ghanaians are likely to stay away from mobile money transactions for a long time.

“Our results suggest that the official attrition rate of 24%, which the government estimates for the first three to six months following the introduction of e-direct debit, is likely to be much higher.

“This finding implies that the projected target of GH¢4.5 billion (GH¢560 per month) in electronic debit revenue for 2022 is unlikely to be met given the strong reaction from consumers and those who are finding alternative ways to conduct financial transactions,” a report published on the June 22, 2022 survey, said.

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Source: YEN.com.gh

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