Digital lenders have said they won’t present small amounts defaulters to the credit reference bureau for blacklisting.
The lenders association is calling for the creation of stringent policies that will guide listing of defaulters at the CRB.
Recently the banking association of Kenya urged digital lenders not to forward names of defaulters with small amounts to the CRB for blacklisting saying the listing of such borrowers is likely to have an effect on the SME sector.
The digital lenders seem to agree with the proposition, with the digital lenders association saying it will prevail on its members not to forward small amounts defaulters to the credit bureau reference.
The association says there is a need for clear policies and frameworks to govern how defaulters should be listed at the credit bureau.
The association has urged its members to clearly state the terms and condition of their services to enhance accountability in the sector.
Digital lenders have been advised to ensure the collection of debts is done in a more humane manner and data collection should be done with customers consent.