consumer diaries

A Zambian consumer’s blog, written strictly by consumers for other consumers

Is ZamCash Endangering Next of Kin Without Consent?


ZamCash, a prominent Zambian digital lending platform, has revolutionized the financial industry by offering swift and convenient loans to its users. While the ease of securing loans has garnered widespread attention, some consumers have voiced concerns about the company’s procedures. It appears that ZamCash allows loan applicants to designate their next of kin as guarantors without prior notification. This practice has ignited a debate regarding its ethical and legal implications. Let us delve into the potential risks and question the propriety of ZamCash permitting this practice.

The Implications:

  1. Privacy Concerns:
    Designating a next of kin as a guarantor for a loan without their consent infringes upon their privacy. Your next of kin may not be comfortable assuming responsibility for your financial obligations. This practice raises fundamental questions about consent and respect for personal boundaries.
  2. Potential Harassment:
    In cases of loan default, next of kin may experience unwanted pressure and harassment from ZamCash debt collectors. They might be unaware of the debt until it escalates into a problem, causing significant stress and discomfort.
  3. Legal Implications:
    Is ZamCash exposing itself to potential legal issues by failing to obtain explicit consent from the next of kin? What happens if the designated next of kin denies any knowledge or responsibility for the loan? These are complex legal questions that demand clarity.

Call to Action:

To address these concerns and safeguard consumer rights, we strongly urge the Competition and Consumer Protection Commission (CCPC) to conduct a thorough investigation into ZamCash’s practices. It is imperative to determine whether these practices contravene consumer rights and privacy regulations. Additionally, we implore the CCPC to consider the following actions:

  1. Review the consent process for next of kin involvement in loans. Ensure that next of kin are explicitly informed and provide consent for their role as guarantors.
  2. Implement robust consumer protection measures, including transparent disclosures of the obligations for both borrowers and their designated next of kin.
  3. Ensure that the company adheres to existing privacy and data protection laws, especially when handling the personal information of next of kin.

We encourage consumers, particularly those who have been designated as next of kin without their consent, to share their experiences and concerns. Your voices matter, and your stories can shed light on the impact of these practices. If you have been contacted by ZamCash or its representatives, please let us know what transpired, how you were treated, and what was asked of you. Your input can contribute to a more comprehensive understanding of the issue.

While the convenience offered by digital lending platforms like ZamCash is undeniable, it is crucial to strike a balance between accessibility and consumer protection. Allowing loan applicants to designate their next of kin as guarantors without prior notification raises significant ethical and legal concerns. To uphold consumer rights, preserve ethical lending practices, and protect the privacy of borrowers and their next of kin, it is paramount that the CCPC investigates these practices and ensures the implementation of adequate measures.