Kenyan Loan App, Whitepath, Fined $2,000 Due to Unauthorized Guarantor Additions and Harassment Practices

A Kenyan loan app, Whitepath, has been fined $2,000 by the Office of the Data Protection Commissioner (ODPC) for breaking data privacy laws. This isn’t the first time Whitepath has been in trouble for similar issues. Just two years ago, they faced a much bigger fine of $39,000 for violating data privacy rules.

The latest case involves a man named Dennis Caleb Owuor. He got a call from Whitepath in November 2024, telling him he was listed as a guarantor for a loan. The problem was, Owuor had no idea he was a guarantor and hadn’t agreed to it. Despite his protests, Whitepath kept calling him, demanding that he pay the debt.

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Owuor was frustrated and worried about his privacy, so he complained to the ODPC. When the regulator asked Whitepath to explain themselves, the company didn’t respond. This led the ODPC to take action, as allowed by Kenya’s Data Protection Act.

The ODPC decided that Whitepath had no right to use Owuor’s information or list him as a guarantor without his consent. They also found that Whitepath didn’t tell Owuor they were using his data, which is against the law. As a result, the Whitepath loan app was fined and told to delete Owuor’s data, proving they had done so.

This isn’t an isolated incident. Whitepath operates other loan apps like Instarcash and Zuricash, and they’ve faced similar complaints before. In 2023, they were fined for accessing borrowers’ contact lists without permission and sending unwanted messages. It seems like they didn’t learn from their mistakes.

The situation highlights a bigger problem with digital lenders in Kenya. Many of them have been accused of using aggressive tactics to collect debts and mishandling customer data. Some even share debtors’ information publicly or take contacts from borrowers’ phones without asking.

Experts think the fines might not be enough to stop these practices. They suggest that stronger penalties and better regulation are needed to protect consumers and ensure lenders behave responsibly.

As digital lending grows in Kenya, it’s crucial to balance innovation with consumer protection. The challenge is to make sure companies like Whitepath respect privacy and follow the rules while still providing essential financial services.

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The recent fine against the Whitepath loan app is a reminder that lenders must prioritize customer privacy and get proper consent for using data. It also shows how important it is for companies to respond to complaints and regulatory inquiries.

For now, Kenyan consumers should be cautious when using digital lending services and report any suspicious or abusive practices to the authorities. It’s clear that more needs to be done to address these issues and ensure that lenders operate fairly and responsibly.

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