Borrowers and Lenders Act No. 773

Ghana

(enacted in 2008)

Borrowers and Lenders Act No. 773 of 2008 provides a legal framework for the provision of credit in Ghana including standards of disclosure and provisions for the establishment of a collateral registry. The act provides a detailed description of rights and obligations of borrowers and credit providers.

Supervision lies with the Bank of Ghana, which ensures compliance with the act through investigation and monitoring, and receives written complaints about alleged interventions of the act. The Bank of Ghana may impose an administrative fine in case of non-compliance.

The act contains various provisions on consumer protection, including the following:

  • Clauses 13-17 provides for borrowers’ rights. The rights include the right to apply for credit, protection against discrimination in respect of credit on grounds of race, sex and ethnicity. Other rights include the rights of political affiliation, the right to receive documents, and the protection of borrower credit rights and confidentiality, personal information and borrower credit record. A person aggrieved by a decision of a lender may make a complaint to the Bank of Ghana.
  • Clause 18 states that a lender has to provide a prospective borrower with a pre-agreement statement and quotation in the form of a schedule specified in the act. The schedule can be found on the last page of the act.
  • Clause 19 specifies the use of marketing to induce a person to apply for or obtain credit.
  • Bank of Ghana is required to submit an annual report to the Minister of Finance within six months after the expiration of each financial year. The report must include information on violations and remedial action, volumes of different types of credit products and proposals for ongoing improvement for the effective implementation of the act.