The Bank of Ghana (BoG) has issued a warning to people who have taken out loans using Mobile Money platforms but have purposefully chosen not to register their SIM cards in order to avoid paying back the debts.
Failure to repay such loans will have a detrimental impact on the borrower’s credit history or reports, which may therefore make it more difficult for them to receive loan facilities from other financial institutions and credit providers in the future.
A representative of the Bank of Ghana’s Financial Stability Department, Godfred Cudjoe, urged clients who were in default to make good decisions and repay their loans in an interview with Citi Business News.
“Some people have hesitated to register their sims with the belief that if they do so and are able to assess those sims again, it will indicate that the debts have been largely forgiven and the banks are unaware of the loans, and this is why we want to raise their attention to it,” the group said.
“We are warning customers that have taken a loan and have that intention to rescind their decision and get in touch with their telecom operators or the banks that they took the loans from so that they can make arrangements to pay back before their information is adversely affected in the credit bureau system,” the statement reads. “We want to curtail the risk that in the near future where they may need a loan and go to the bank and they may be refused.”