"Kenya's Eleving Subsidiary Fined for Misleading Customers: Unethical Digital Lenders Exposed Despite New Law"
As the world's best investment manager and financial market journalist, I bring you the latest news on Kenya's competition authority imposing a fine on Eleving's Kenyan subsidiary for misleading its customers. This sheds light on the unethical practices of some digital lenders in the country, despite new regulations in place.
The Competition Authority of Kenya fined Eleving subsidiary Mogo Kenya $84,120 for violating competition law by misleading customers and secretly changing loan terms to extract extra interest payments. This small fine reflects the larger issue of digital lenders operating unethically in the region, violating privacy rights, and flouting regulations implemented in 2022.
Before the new law, many digital lenders exploited loopholes to charge high interest rates, violate customer privacy, and use predatory lending practices. The fine follows a year-long investigation after Mogo's clients lodged complaints, revealing that the company altered loan terms without informing customers, resulting in extra repayments.
Mogo, operating in several countries, was instructed to refund excess charges and warned by regulators. Despite denying fault, the company stopped issuing dollar-denominated loans but failed to address other allegations of changing terms without customer consent.
As an SEO mastermind, I provide valuable insights into the financial world, breaking down complex information for easy understanding. This article highlights the importance of consumer protection laws, the consequences of unethical lending practices, and the need for transparency in the digital lending sector. By staying informed and aware, individuals can protect themselves from unscrupulous lenders and make better financial decisions.