The Bank of Ghana has warned Mobile Money (MoMo) loan defaulters that failure to pay attracts negative repercussions.
According to the BoG, failure to pay MoMo loans would adversely affect any chance of obtaining loan facilities from other financial institutions and credit providers in future.
The BoG was reacting to reports that some individuals who have acquired loans through MoMo platforms, have deliberately refused to register their SIM cards in the on-going national Subscriber Identity Module (SIM) Card registration exercise, with the intention of avoiding repayment of the acquired loans.
The BoG in a statement issued in Accra yesterday cautioned the public that data on all MoMo loan customers were domiciled in the databases of credit bureaus.
As a result, the banking sector regulator said failure to repay such MoMo loans will attract negative repercussions on borrowers’ credit reports/history.
The BoG therefore, advised borrowers who have discarded their SIM Cards to contact their telecommunication service providers or respective lenders, to discuss repayment arrangements of MoMo loans to avoid adverse information on their credit reports that could deny them access to future credit facilities.
“The consequences of defaulting is not only the penalty of 12.5 per cent charge in the amount borrowed. But, also a negative impact on credit score, thus disqualification from the services for three months,” the statement said.