DELA condemns unethical practices made by Illegal ‘Lending Apps’

Sri Lanka’s Digital Alternative Lending Association DALA says that their global lending model is being copied and duplicated by several competitors creating issues for their customers who had been with them for several years.

DALA consists of esteemed and reputable entities such as Lotus Loan, Robocash, LoanMe, Fino.lk, Cashx, and Oncredit also put forth recommendations aimed at safeguarding against financial scams at a press conference last week.

DELA the only self regulating body for the digital lending industry of Sri Lanka strongly condemned the unethical practices made by dubious or illegal lending companies, such as unfair debt collection practices and incessant harassment and reminds the general public to only engage with legitimate financial service providers.

CEO Director A V Business Solutions (Private) Limited Polina Vertey said that their monthly lending portfolio in Sri Lanka is around Rs. 2 billion and they operate with almost zero collateral. “Our borrowers are mostly in the micro and SME sector and their pay back ration is very impressive.”

“DALA believes these dubious or illegal lending apps misrepresent the growing digital lending industry in the country, perversely counterintuitive to legitimate players in the segment that are making a proactive effort to reach the financially underserved who are in need of access to formal credit options.

“Our members’ lending operations are transparent and responsible, substantially distinguished from entities engaged in fraudulent activities within the financial sector,” Artjoms Director, CEO Fino.lk said.

“A non-profit organization registered under the Companies Act No. 7 of 2007, DALA stresses its commitment to fair and ethical business standards, practices, and laws — open to collaborating and fostering sound relationships with the relevant authorities as it develops policies to curb such practices from these fly-by-night companies.”

The importance of consumer protection was highlighted, stressing the necessity for individuals to verify and exercise caution before entering into any financial agreements.

DALA plays a significant role in the booming fintech industry in Sri Lanka and announced they are very keen to obtain approval from the central Bank once the Micro Finance Act is formulated.

“This will further help DALA also boost the sustainable development and growth of the Sri Lankan financial sector. Most importantly, as a self-regulatory platform, DALA is a unique marketplace to facilitate and encourage the digital lending industry, representing the common interests of our members.”

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