NEWS– Kanungu Resident District Commissioner Ambrose Mwesigye Amanyire has urged all money lenders to return people’s National Identification cards which they handed oved as collaterals and find other ways of getting back their money or instead take their photocopies.
RDC Mwesigye Amanyire made the appeal while in a meeting with Kanungu District Money lenders at the District Council Hall where he explained the new regulatory laws for money lending.
RDC Mwesigye Amanyire urged money lenders to build a strong relationship with their customers and stop overcharging them interest rates and also said that all un registered money lending services will be closed permanently if they totally fail to register and licence and also urged money lenders to stop conniving with police officers and judges.
While speaking in the same meeting, Kanungu District Deputy RDC Gad Ahimbisibwe Rugaaju urged them to stop pressurizing and forcing borrowers to pay daily on their loan interest rates and charging exorbitant and company interest rates on loans and also summoning loan defaulters without court orders.
Deputy RDC Ahimbisibwe Rugaaju said that court is the only one in authority to charge defaulters but not Police or a Money lender and urged them to always have record keeping and issue receipts after a borrower pays to avoid conspiracy.
Ahimbisibwe Rugaju also told Money lenders to get licences from their areas of operations with town councils and sub counties and also register with Uganda Microfinance Regulatory Authority and licences and the commercial officers were tasked to register all legal and illegal money lenders in the areas of their operation for easy monitoring.
He further asked money lenders to stop forcing people to write sales agreement instead of loans agreement and promised to sensitise LC 1 chairpersons on the same saying that the practice has caused insecuriry in the community resulting into domestic violences.
Kanungu District Senior Commercial Officer Atuheire Mark urged them to register their companies, licence their money lending services and register with authorities and stop operating illegally and said money lender should stop taking advantage of their borrowers ignorance by selling their borrowers land and urged them to stop taking their land titles as collaterals because their property are not worth money borrowed.
