Deputy Speaker of Parliament Thomas Tayebwa has raised concerns over exploitation and harassment by some online lending companies, urging authorities to investigate the sector’s practices.
Mr Tayebwa’s remarks follow a personal experience with an online lender, Mangu Cash, which he shared on social media.
In a post on X (formerly Twitter), Mr Tayebwa recounted receiving a call from a representative of the lender, who allegedly threatened financial action if he failed to locate an unknown borrower who had listed him as a next of kin.
“I have just received a call from some tough-speaking lady claiming to be from Mangu Cash, threatening to deduct their loan money if I don’t produce some random person who put my name as their next of kin when they were borrowing. I think a lot of criminality is going on,” he wrote, tagging Police CIID Director Tom Magambo.
Tayebwa’s call for action reflects a growing national concern over the aggressive debt collection methods employed by some online lenders.
While digital lending offers financial access to those outside traditional banking, reports of unauthorized contact and debt collection tactics have raised questions about the sector’s ethical standards.
The Deputy Speaker’s appeal is directed at financial regulators and law enforcement, urging them to address these practices.
“Police Director CIID Tom Magambo, you need to interest yourself in this sector; many Ugandans might be dying quietly,” Tayebwa added, noting the potential hidden impact on financially distressed citizens.
Critics say that some digital lenders operate without sufficient oversight, often requiring borrowers to list contacts as “next of kin.”
In cases of default, these contacts are reportedly targeted for debt recovery, despite not being involved in the loan agreements, leading to harassment and privacy violations.
Tayebwa also hinted at the involvement of mobile money platforms in these practices, urging telecom companies to ensure that their services are not misused by lenders for unauthorized debt recovery.
He appealed to telecom operators to reassess their roles in preventing these abuses, especially with the rise in mobile money transactions.
Regulators, including the Bank of Uganda (BoU) and Uganda Communications Commission (UCC), have been working to regulate the sector but face challenges due to its rapid growth and limited legislation governing online lending.
In response to increasing complaints, the BoU has issued warnings to unlicensed digital lenders and encouraged Ugandans to report harassment.
The Deputy Speaker’s statement is expected to increase pressure on authorities to strengthen consumer protections and privacy rights within the digital lending space.
Meanwhile, Next Media’s “Beera Steady” campaign is underway, promoting public awareness about digital fraud.
Ugandans are now looking to government bodies and law enforcement to act on Tayebwa’s concerns, with many hoping for increased oversight to protect citizens from harassment and exploitation under the guise of digital lending.
