Complaints about digital lenders

Complaints Detail

Complaints

Complaints about digital lenders

Country: Kenya
Court:
Sources: Social media (Twitter) Jan 21 at 2022,Official statements from ODPC and Thomson Reuters Foundation News
Tags: Lenders,Digital Lenders,Privacy,Fintech

John Bigingi, a taxi driver found himself in a fix of sorts after a lending company went after him.With the 14 day repayment period barely lapsed, Bigingi received a text that threatened to call his contacts, labelling him as a defaulter.  The lender in question was iPesa who since failed to respond to requests for comments on this. Ipesa had allegedly threatened to send 20 calls and 15 messages at 6 p.m. on that day to Bigingi’s contacts if he did not make payment by then.

The above is just but one of the many incidences of data protection breaches by lenders. This has been increasingly common, with more Kenyans borrowing from unregulated-mobile based loan apps termed as “rogue lenders'' offering collateral-free credit. Despite this downside, some  economists have hailed such lenders for “financial inclusion” for those without bank accounts. Many still hold, and rightfully so, that their practice is unethical and only aim to profit from the financially disadvantaged. An avenue for this violation has largely been data abuse , against their data protection rights.

Frequently Asked Questions

Frequently Asked Questions

A data subject is a natural person who is the subject of personal data held by a controller and who can be identified, directly or indirectly, through that personal data.

Each data subject has the right:

  • to be informed whether or not his or her personal data is being processed,
  • to request information about the processing, if data has been processed,
  • to be informed of the purpose of the processing and whether the data is being used in accordance with those purposes,
  • to be informed about third parties who receive personal data in Kenya and abroad,
  • to request the rectification of incomplete or inaccurate processed data, and
  • to request the erasure or destruction of personal data.

Data processing refers to any operation performed on personal data, either entirely or partially, automatically or manually. This includes collection, recording, storage, preservation, modification, revision, disclosure, transmission, assignment, making available, classification, or prevention of use.

Data controller: is a natural or legal person who determines the purposes and means of personal data processing and is accountable for the data filing system's establishment and administration.

Data processor: is a natural or legal person that processes personal data on the basis of a data controller's authorization.

The data controller or processor is required to provide the following information: the purpose of the processing, the recipients of the processed data and the purpose of the transfer, the method used to collect personal data and its legal basis, and any other rights granted to the data subject by law.

The principles governing data processing are as follows: it must be processed fairly and lawfully, it must be accurate and up to date, it must be processed for specified, explicit, and legitimate purposes, it must be adequate, relevant, and not excessive in relation to the purposes for which it is processed, and it must be retained for the duration specified by law or for no longer than is necessary for the subsequent processing.

A Data Protection Impact Assessment can be used to identify and mitigate high risks associated with data processing that may impact the rights and freedoms of data subjects.

A data controller is a natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purpose and means of processing of personal data. On the other hand, a data processor is a natural or legal person, public authority, agency or other body which processes personal data on behalf of the data controller.