The regulatory body expressed serious concerns about the increasing number of entities using mobile applications and social media platforms to extend credit illegally.

Government Lists 59 Illegal Online Loan Apps

by Nicholas Agaba

posted onAugust 27, 2024

nocomment

The Uganda Microfinance Regulatory Authority (UMRA) has identified 59 online applications that are illegally offering loans across the country. UMRA, which was established under the Tier 4 Microfinance Institutions and Money Lenders Act of 2016, is responsible for licensing, regulating, and supervising Tier 4 microfinance institutions and money lenders in Uganda.

The regulatory body expressed serious concerns about the increasing number of entities using mobile applications and social media platforms to extend credit illegally. These activities are in breach of both the 2016 Act and the Tier 4 Microfinance and Digital Lending Guidelines 2024. UMRA noted that these unauthorised entities often fail to adhere to consumer protection standards and misuse consumer data, thus compromising privacy.

In its statement, UMRA emphasised that these unauthorised loan providers are not complying with the required consumer protection measures, describing their actions as an abuse of customer data privacy. UMRA has issued a public caution, advising people to avoid engaging with these illegal loan providers.

The regulatory body expressed serious concerns about the increasing number of entities using mobile applications and social media platforms to extend credit illegally.

UMRA also urged the public to report any cases of non-compliance by calling their toll-free numbers 0800111449 or 0417799700. Complaints can be sent via email to info@umra.go.ug or complaints@umra.go.ug. Additionally, complaints can be submitted through the UMRA website at www.umra.go.ug, or by visiting UMRA’s offices located on the Ground Floor of Rwenzori Towers Wing B along Nakasero Road.

Illegal Online Loan Apps in Uganda Include: