Lenders Vouch for Common Approach to Credit Data For Consumer Protection

Digital loans

The Digital Lenders Association of Kenya (DLAK) was formed to set ethical and professional standards in the industry, and drive the overall growth of the digital lending and fintech sector. The self-regulated group has opened up about the industry being regulated and the are strongly rooting for data privacy.

To develop the industry, the body is vouching for consumers’ privacy protection and empowering users with better control and visibility over their personal information, In their code of conduct, they have incorporated ethical guidelines on gathering and using customer data and collecting debts.

“Every customer has a Constitutional right to privacy. Digital lenders must incorporate this integral fact into their policies and processes and protect consumers from unnecessarily revealing personal information. We strongly support the idea of developing a common approach to credit data for all lenders whether they are banks, microfinance institutions, digital or not. This will enhance financial inclusion and will increase customer protection furthermore,’’ Mutiso said DLAK spokesperson Kevin Mutiso.

The body now wants reporting to credit reference bureaus to be used as the formal channel where borrower history is shared in a legal manner which will further open up access to credit for many low-income earners. As for debt collection, the body now wants the use of visible credit points to protect their customers from abusive debt collectors.