The Examination of Consumer Protection and Digital Lending Law and Practice in Tanzania

Abstract

Widespread access to digital lending has epitomized a ground-breaking change in financial access. Digital lending offers extraordinary decreases in transaction costs and time wastage; in many countries, digital lending is far outstripping traditional lending. But the same characteristics of digital lending also have the ability to harm customers in the form of unfair competition in the digital credit market, unfair application of consumer protection rules (cybersecurity, consumer data protection and privacy), unfair payment and collection practice, risk of over-indebtedness, as well as different levels of oversight, especially if, consumer protection laws are limited or not strictly enforced. This study critically examines the challenges faced by consumers in digital lending platforms specifically app-based lending. The research explores the legal framework governing financial consumer protection in digital lending in Tanzania specifically app-based microfinance. The study will analyse the findings from the field and analyse the practical aspects of the law governing consumer protection in digital lending in Tanzania