Police and the Personal Data Protection Office (PDPO) have raided a call centre operated by SyncLend Uganda Limited, an online money lender accused of harassing borrowers’ relatives and other phone contacts over unpaid loans.
The operation, conducted on Thursday afternoon, targeted the company’s call centre in Ntinda, Kampala, where 13 people were arrested.
Kampala Metropolitan deputy police spokesperson Luke Owoyesigyire said the company operates several online lending applications, including Mara, X Cash, Dove and Funa Loan, which it allegedly uses to advance mobile loans to members of the public before accessing borrowers’ phone contacts and calling them over unpaid debts.
Owoyesigyire said the suspects were arrested for allegedly operating an online money-lending application without a registration licence from the PDPO, contrary to Section 29(i) of the Data Protection and Privacy Act, Cap. 97.
Police also recovered 19 smartphones, 10 laptops and several used SIM cards during the operation.
“We also recovered 19 smartphones, 10 laptops and multiple used SIM cards. The suspects will be charged with failure to register with the PDPO, contrary to Section 29(i) of the Data Protection and Privacy Act, Cap. 97, as well as unlawfully obtaining and disclosing the personal data of various Ugandans, contrary to Section 35 of the same Act,” Owoyesigyire said.
According to Owoyesigyire, the arrests followed complaints from members of the public about the lender’s alleged practice of repeatedly calling borrowers’ contacts and harassing them over outstanding loans.
He said the suspects were being held at the Central Police Station in Kampala as they awaited arraignment in court.
Members of the public have repeatedly complained about harassment by online money lenders, accusing some digital lending companies of making persistent calls to borrowers and people listed in their phone contacts over unpaid debts.
A few years ago, Ugandan human rights activist Ronald Egesa took an interest in the plight of customers using digital lending applications after one of his relatives reportedly fell victim to the practices.
Egesa subsequently launched an online campaign dubbed #IllegalOnlineApps, through which he encouraged members of the public to share their experiences with digital money lenders.
The campaign attracted responses from several people who shared their experiences with online lending services.
