Zambia Consumer Association (ZACA) has renewed calls for regulatory institutions, including the Bank of Zambia (BoZ), to urgently regulate, monitor, and, where necessary, de-register online money lenders accused of exploiting consumers.
Recently, the Central Bank warned the public against using unlicensed online money lenders, citing predatory practices, unfair interest rates, and hidden costs. The Bank cautioned that such unlicensed entities can cause significant financial harm, leaving victims with unaffordable debts and no proper recourse mechanisms.
ZACA expressed concern over the growing number of complaints from consumers about online money lenders charging exorbitant interest rates and engaging in unethical and intimidating practices.
Association Media Team Member Sandra Machima noted that most online money lenders operate outside the established regulatory framework, taking advantage of vulnerable citizens in urgent need of financial assistance.
Ms. Machima emphasized that the digital financial space must not be allowed to become a breeding ground for exploitation and psychological harassment.
“It is particularly alarming that some online lenders have resorted to threatening borrowers with public exposure, job loss, or reporting them to their employers when they fail to repay on time. Such conduct amounts to gross consumer abuse, invasion of privacy, and a clear violation of fundamental consumer rights,” Ms. Machima stated.
“ZACA is therefore calling on the Bank of Zambia and the Zambia Information and Communications Technology Authority (ZICTA) to take urgent action to regulate, monitor, and, where necessary, deregister online money lenders that are exploiting consumers.”
She further urged the Central Bank to develop and enforce clear lending guidelines for all digital and mobile-based lenders, including setting caps on interest rates and ensuring transparent disclosure of all loan terms and conditions.
“Similarly, ZICTA should ensure that these platforms do not misuse telecommunications services to harass or intimidate consumers through persistent calls or threatening messages,” she added.
Ms. Machima reaffirmed the Association’s commitment to protecting consumers from financial exploitation.
She said ZACA will continue engaging relevant authorities to ensure that all financial service providers operate within the law, uphold ethical standards, and respect the dignity and rights of Zambian consumers.
