The Bank of Zambia (BoZ) has cautioned the public against dealing with unlicensed online credit providers following numerous complaints of predatory lending practices.
In a statement, BoZ revealed that some unlicensed entities are engaging in unfair, deceptive, and fraudulent loan practices, preying on unsuspecting borrowers by luring them into unaffordable online loans.
The central bank warns that consumers who transact with such providers expose themselves to serious financial risks, as they are not protected under the usual consumer protection mechanisms in the event of disputes.
BoZ has urged the public to exercise due diligence by verifying the licensing status of financial service providers before entering into any agreements.
Licensed providers, the bank says, are subject to regulatory oversight, which ensures adherence to consumer protection standards, transparency, and fair business practices.
By Rachel Mumba
