The Bank of Zambia issued a warning following numerous complaints about unlicensed online credit providers involved in predatory lending, including unfair, deceptive or fraudulent practices that entice borrowers into unaffordable loans. It advised the public not to engage with any financial service provider that is not licensed and to verify a provider’s licensing status before transacting. The central bank highlighted that consumers dealing with unlicensed entities face significant financial and other risks because normal consumer protection recourse mechanisms may not be available in the event of disputes. It also noted that licensed financial service providers are subject to regulatory oversight and are expected to comply with standards on consumer protection, transparency and fair business practices, with a list of licensed providers available on the Bank of Zambia’s website. The Bank of Zambia is working with other relevant competent authorities to hold unlicensed credit providers to account.
Bank of Zambia 2025-09-25
Bank of Zambia warns against unlicensed online credit providers and predatory lending practices
The Bank of Zambia issued a warning about unlicensed online credit providers engaging in predatory lending practices, advising the public to verify licensing before transacting. It emphasized the risks consumers face with unlicensed entities due to the lack of consumer protection mechanisms. The central bank is collaborating with other authorities to address these unlicensed activities.