Mobile money lending app Okash has denied allegations by the digital lenders association of Kenya of mistreating defaulters.
On Tuesday, DLAK issued a statement warning the two organization noting that they have received complains from a majority of Kenyans.
In a statement sent to media houses, the management of OKash said is aware of the recent letter published by the Digital Lenders Association of Kenya, a non-governmental institution founded by several firms that are direct competitors to OKash.
The management claimed that the letter had a series of false and misleading accusations based on social media reports as opposed to factual knowledge about the debt collection process in OKash.
“The OKash terms and conditions clearly state that when a user initially registers in the OKash app, they provide the service with contact information from their reference number or referee which is contacted only in case the original borrower becomes unreachable,” the statement read.
Adding, “For the avoidance of doubt, calling numbers from a user’s contact list is not a practice that OKash does since it is not part of the guidelines of the company during the repayment process,”.
OKash is an award-winning fintech app that ranks among the most popular Fintech applications in Kenya.
” OKash wishes to inform its customers and the public that the company shall continue providing its services in accordance with the regulations stipulated by Kenyan laws,” the statement read.
The DLAK association members include Tala, Alternative Circle, Stawika Capital, Zenka Finance, MyCredit, Okolea, LPesa, Kopacent, Four Kings Investment T/A Sotiwa, Mobile Financial Solutions (MFS), Kuwazo Capital, Finance Plan Ltd, Branch, VAELL Leasing, Roamtech solutions, Aspira, Mobfin, Fiberry, and Pesa zone.
During last month’s Monetary Policy Committee press briefing, Central Bank Governor Patrick Njoroge criticized loan apps for their how they conduct their operations adding that their existence poses a major risk to the country’s financial system.