Press releasePSPA Secretariat
Statement on naming guarantors without consent
PSPA does not support designating any person as a guarantor without their knowledge and informed consent.
The Payment Services Providers Association does not support the designation of any person as a guarantor without their knowledge and informed consent.
Before Parliament
PSPA appeared before Parliament's Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (PAC-COSASE) to present its position on the alleged use of members of the public as guarantors, without their knowledge or consent, by licensed payment service providers and payment system operators.
PSPA members facilitate loan payments. They do not make lending decisions, appoint guarantors or obtain guarantor consent. That responsibility lies with the lending companies.
PSPA asked the committee to recognise the distinction between payment processing and lending, to obtain evidence from the lending companies, and to strengthen guarantor consent requirements to protect Ugandans.
Consumer protection is part of how the payments sector earns public trust. Members with questions about this position can contact the Secretariat.
None of our Members can offer a loan or credit to any consumer directly. We only provide the platform for disbursing funds. The management of the loan is entirely the responsibility of the lending company.Japhet Aritho, Chairman
Our license as PSPs and PSOs from Bank of Uganda precludes us from offering loans. We do not have a lending license.Ronald Azairwe, Vice Chairman
