Borrowers using mobile loan apps are hoping to find relief after Digital Lenders Thursday launched a code of conduct to self regulate.
Kenyans have been complaining over harassment by the lenders whom they accuse of calling their contacts telling them how they have defaulted on loans.
They have also raised concerns over how safe is their data in the hands of mobile lending companies.
The apps can track the borrower’s location, take the borrowers photo without consent, access and contact the borrowers’ contacts giving them significant latitude over the traditional lenders.
Members of the public will also get a place to forward their complaints.
It is estimated that more than 7 million plus digital borrowers have already accessed services from digital lenders in Kenya.
Members of the Digital Lenders Association of Kenya (DLAK) say at the heart of the code of conduct is consumer protection.
Kenyans indebted to more than one mobile lending application stopped from accessing loans from multiple lenders if a proposal by DLAK sails through.
Price simplicity and data protection should be at the heart of all digital lenders of DLAK code of conduct.