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Thursday, June 13, 2024

Sri Lanka’s Digital Alternative Lending Association (DALA) Condemns Unethical Practises Made By Dubious Or Illegal Lending Apps/Companies

In recent days, the number of payday loan scams has increased dramatically as dishonest lenders take advantage of public struggling with strained budgets and crippling debts. Illegal online payday lenders sidestep consumer lending laws, engage in shady sales tactics, and aggressively pursue borrowers who fail to repay them on time. The problem is especially prevalent online, where scams are easier to set up and avoid detection by regulators.

About DALA

DALA (Digital Alternative Lending Association) is a non-profit organization registered under the Companies Act No. 7 of 2007. DALA plays a significant role in the booming fintech industry in Sri Lanka. We stand out as the only self-regulating body for service providers in the digital lending industry. The establishment of the DALA platform is a watershed to strengthen a solid rapport among its members, customers, stakeholders, and relevant supervisory authorities in a more collaborative, open, and transparent manner. To achieve this objective, DALA is committed to adhering to fair and ethical business standards, practices, and laws.

DALA believes these illegal lending apps/companies 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 need access to formal credit options.

DALA Members

DALA consists of esteemed and reputable entities such as Loanme, Lotus Loan, Robocash, Fino.lk, Cashx and Oncredit -also put forth recommendations aimed at safeguarding against financial scams.

Our members are dedicated to uplifting and supporting the lifestyles of Sri Lankans with a financial helping hand when they are in need, and at the same time, DALA will 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.

Loanme as a member of DALA, adheres to its code of conduct committing to protect the customer and providing sustainable and memorable customer-centred business experience. Our dynamism creates value and advancement to the finance industry, creating the need for upgrading existing laws and regulations to fill the vacuum for customer’s instant but essential financial needs. As an initiative, a press conference was held on 08.12.2023 with the presence of all members of DALA and local media to elaborate our stand as a responsible self-regulatory body in the digital lending industry.

Press Conference video:

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