Nape wants TCRA to act on unlicensed online lenders
DODOMA: THE government is working on public concerns over a growing problem of harassment of loan defaulters and their relatives and friends in social networks by some unlicensed online lenders, the Minister for Information and Communication and Information Technology, Nape Nnauye has said.
He said in Parliament yesterday that the problem of harassing loan defaulters in social networks by unlicensed microfinance service providers was growing and he instructed the Tanzania Communication Regulatory Authority (TCRA) and the Cybercrime unit of the police force to work on it.
“This thing is not polite, it is out of order and it is against the laws of the country, it should be stopped,” said the Minister in response to a question from the Speaker of the National Assembly, Dr Tulia Ackson who wanted to know what the government is going to do about that.
Unlicensed online lenders are known for giving out quick loans, but they are also notorious for harassing defaulters into paying back their loans by involving their family and close friends.
In doing so the digital loan providers breach the data privacy of their debtors and resort to unprofessional conduct and illegal measures.
The Microfinance Act stipulated that microfinance service providers should not harass, abuse or oppress a borrower, guarantor or any person in social networks.
The law says a microfinance service provider shall consider a loan application in accordance with its lending policy and shall, if satisfied that a borrower meets loan conditions and has the capacity to repay the loan, enter into a loan agreement with the borrower.
Earlier, the Deputy Minister for Finance, Hamad Chabde said the government had enacted Cybercrime Act 2015, The Electronic Transactions Act of 2022 and the Personal Data Protection Act, 2022 to ensure that online business are properly managed.
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The Personal Data Protection Act of 2022 was passed on November 2022 as a recognition to the right to privacy and personal security enshrined under Article 16 of the Constitution of the United Republic of Tanzania, 1977.
The Act sets minimum requirements for the collection and processing of personal data in Tanzania.
The Deputy Minister was responding to a question from Husna Sekiboko, Special Seats-CCM) who wanted to know government strategies to properly manage online business.
The Deputy Minister said the government had also amended the Electronic Transactions Act of 2015 as well as preparing the regulations for service providers to enable use of digital signatures for strengthening the protection of internet users which will facilitate the smart management of online business.
He said the government in collaboration with stakeholders has prepared a Digital Economy Strategy (2024 – 2034) which, among other things, establishes a good online business environment that considers the protection, security and privacy of all users of IT products and services in the country.
Mr Chande said the government was in the process of reviewing the national ICT policy to strengthen the environment for the use of emerging technologies in the provision of various digital services, including online business.
Likewise, the Ministry is cooperating with the Ministry of Industry and Trade in the completion of the National Strategy for Internet Business, which will also strengthen online business in the country, he said.
