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How Woman Won Ksh450K After Being Listed as Guarantor for Digital Loan
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How Woman Won Ksh450K After Being Listed as Guarantor for Digital Loan

Early this year, Whiteраth Сompany Limited was ordered to pay a woman Ksh450,000 after she was listed as a guarantor for a digital loan given to her work colleague.

In the complaint that was lodged with the Office of the Data Protection Commissioner (ODPC), Marlene Ngina reported that she only knew that she was a guarantor when her colleague defaulted on the payment of the loan.

She stated that she was called by agents of the digital lender who reminded her to push the borrower to repay the loan.

Concerned that her data was breached, she filed a complaint with the OCPC.

In her case, she stated that her data was processed unlawfully, adding that she faced the possibility of repaying the loan taken by her work colleague.

"The Complainant asserts that the Respondent's repeated threats, false accusations, and inconsistent claims have caused her distress and could harm her personal and professional reputation."

"The complainant further asserts that she is neither familiar with the Respondent nor a client or a guarantor whatsoever, and thus, questions how the Respondent obtained her contact details," read the complaint in part.

Ruling

According to the ODPC, all data processors, including digital loan providers, are required to seek consent before processing an individual's data.

In this case, the digital lender ought to have informed the guarantor that her details were being processed as part of the loan agreement.

The body also ruled that an individual ought to be given information on what their data is being used for, in addition to a description of the technical and organizational security measures taken to ensure the integrity and confidentiality of the data.

"Having found that the Respondent failed to uphold the complainant's right to be informed of the use to which her personal data would be put and that the respondent processed the complainant's personal data unlawfully, it then follows that the complainant is entitled to compensation.

"The respondent is hereby directed to compensate the complainant Ksh450,000. In so doing, this office takes into account the negligent and intentional conduct of the Respondent in unlawfully processing the Complainant's personal data," read the ruling in part.

How to file a complaint with ODPC

The process of lodging a complaint with the commissioner is done online through the ODPC website - https://www.odpc.go.ke/file-a-complaint/.

In the particular form, one is required to fill in their details and those of the respondent (the organization they are suing).

The complaint is also required to fill in details of the remedy they are seeking, whether compensation. Those with evidence are also encouraged to attach the necessary documents.

"Only use this form if you are a data subject, or acting on behalf of a data subject and filing a complaint in line with Section 56 of the Data Protection Act," ODPC directs.

"If the space provided for in this form is inadequate, submit information as an annex. If you have supporting documents to substantiate your claim, please annex copies to this form."

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Washington Mito is a digital journalist and content creator based in Nairobi. He is passionate about covering government policy, politics and business.

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