Kampala, (UG):- Barely a week after a whistleblower accused a digital lender, Gold Credit, of gross harassment, another complainant has threatened to sue telecom giant Airtel Uganda over what is described as unethical and potentially illegal activities by the moneylender app which puts customers’ privacy at risk.
Monica Musubika, the complainant, accuses Gold Credit of targeting borrowers in Uganda by misusing their mobile money accounts and contacts without consent, an act that violates the privacy and rights of borrowers and their contacts.
In a scathing letter addressed to Airtel Uganda on January 23, 2025, Musubika highlights several alarming practices attributed to Gold Credit, a digital lender available on the Google Play Store with an office address listed as Crested Towers, Kintu Road, Kampala.
According to the letter, Musubika claims that Gold Credit sends demand notices to borrowers’ telephone contacts, threatening unauthorized deductions. “These contacts have never guaranteed the borrower, and their inclusion seems to be based solely on their presence in the borrower’s phone book,” she wrote.
Further claims by the complainant indicate that Gold Credit representatives often exaggerate amounts owed, sending inflated figures to borrowers’ contacts with intent to intimidate them into repayment.
Musubika, just like the previous complainant, alleges that a man identified as Byarugaba Reagan (contact: hidden) posing as a CID officer has been sending threatening WhatsApp messages to borrowers’ contacts.
“The individual claims to be affiliated with the Criminal Investigation Department (CID) and notifies contacts of impending illegal deductions.”
The whistleblower also raised concerns about Airtel Uganda’s platform being used to facilitate such activities. “It is particularly distressing to see Airtel’s platform potentially being used to facilitate such activities. Their ability to hack the borrower’s contacts and those of the borrower’s contacts should not be permitted by Airtel.”
Gold Credit is not the only digital lender implicated in the complaint. Musubika highlighted other apps, including QuickSente and Kwasakwasa, accusing them of charging exorbitant interest rates that exceed regulatory caps.
“These apps have been provided a free opportunity to extort from the public by charging interest rates beyond the ministerial cap,” she wrote, before calling on Airtel Uganda to take immediate action, which among others she suggested;
- Blocking all contacts associated with Gold Credit to prevent unauthorized deductions.
- Investigating and holding those behind the scheme accountable.
- Blocking the alleged CID officer’s number and ensuring legal action is taken against him.
Should Airtel Uganda fail to act as requested, Musubika warned that this could lead to legal suits filed against the telecom giant.
“Allowing illegal lenders to access borrowers’ accounts and charge excessive interest rates exposes Airtel Uganda to potential lawsuits,” she stated.
Musubika’s letter was also copied to MTN Uganda, the Inspector General of Police (IGP), the Uganda Microfinance Regulatory Authority (UMRA), and the Bank of Uganda (BOU), urging them to join the fight against illegal digital lending practices.
The allegations against Gold Credit and other digital lenders reiterate the growing need for tighter regulation and oversight of Uganda’s digital lending sector, particularly in protecting the privacy and financial security of borrowers.
By the time this story was published by DailyExpress, Airtel Uganda had yet to publicly acknowledge receipt nor respond to the complaint.
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