Deputy Speaker of Parliament, Thomas Tayebwa, has called on the Director of the Criminal Investigations Directorate (CID), AIGP Tom Magambo, to investigate and clamp down on online money lending apps accused of exploiting and harassing Ugandans with illegal loans.
In a post on his official X (formerly Twitter) account, Tayebwa expressed his concerns over the lack of regulation in the online lending sector, which he says has allowed fraudulent apps to thrive, preying on unsuspecting Ugandans who often suffer in silence. He shared a personal incident, describing a harassing call he received from a worker at Mangu Cash, one of the lending apps in question.
“Who is regulating this sector? Ugandans have fallen prey to their harassment and fraud, and most are suffering in isolation,” Tayebwa stated. “I received a call from a tough-speaking lady claiming to be from Mangu Cash, threatening to deduct money from my account if I didn’t locate some random person who put my number as their next of kin when borrowing. It’s appalling.”
Tayebwa explained that his number was used without his consent by an unknown borrower as a reference for a loan, raising alarms about data privacy and ethical practices in the sector.
“The borrower used my number as a reference without my knowledge,” he said
Calling for regulatory action, he urged those in charge to “crack the whip” on these online lending platforms. “Whoever is regulating these online lenders needs to act now,” he insisted.
The Deputy Speaker also questioned the role of telecom companies in potentially facilitating these fraudulent practices through mobile money platforms.
“I hope our telecoms are not allowing their mobile money services to be used for fraud orchestrated by these unscrupulous companies,” he added.
In a direct appeal to the CID, Tayebwa urged Magambo to look into this sector urgently. “Many Ugandans might be suffering quietly due to this unchecked fraud,” he warned.
Several online lending apps have gained popularity by offering quick, short-term loans with minimal documentation requirements.
:Users simply need to download the app, register, and provide identification and contact information. Apps often use phone data, including SMS, mobile money transactions, and contact lists, to assess credit worthiness. Loans are usually small amounts with high interest rates and short repayment periods.
Many apps reportedly use aggressive methods, including contacting personal references or sending threatening messages, to recover debts. Repayments are primarily through mobile money, making the process convenient but allowing for easy penalties and high fees.
