BoG: All financial institutions to blacklist MoMo loan defaulters

The Bank of Ghana has warned Mobile Money (MoMo) loan defaulters that failure to pay attracts negative repercussions.

According  to the banking sector regulator, failure to pay MoMo loans will adversely affect any chance of obtaining loan facilities from other financial institutions and credit providers in future.

The Central Bank 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 cautioned the general public that data on all  MoMo loan customers are 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.

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% charge in the amount borrowed.

But, also a negative impact on credit score, thus disqualification from the services for three months.

Moo loan defaulters are individuals who cannot pay up their loan on the due date. Few realise the need for repaying loans.

Some cannot recognize that the responsibility of a borrower is to make repayment on time.

Failure to do so can cause additional charges, blacklisting and denial of future loans.