Insider Exposes Alleged Loan Scam at Fincredit Uganda
By Our Reporter | Kampala
A fresh storm is brewing in Uganda’s microfinance sector after a whistleblower accused Fincredit Uganda Ltd of systematically concealing loan agreements from its clients, a practice described as “a coordinated act of robbery disguised as financial service.”
The allegations, contained in a whistleblower disclosure letter submitted to the Uganda Microfinance Regulatory Authority (UMRA) and State Minister for Microfinance, Hon. Haruna Kasolo Kyeyune, paint a disturbing picture of how one of the country’s established credit firms allegedly manipulates borrowers by denying them access to their own contracts.
The Allegations
According to the whistleblower—who claims to be a staff member in Fincredit’s credit operations department—the company has adopted a systemic policy of refusing to give customers copies of their loan contracts, particularly for loans secured against vehicle logbooks.
The letter names Mr. Ronald Salama, branch manager at the head office, and the company’s in-house legal team as supervisors of the scheme. It claims staff are routinely instructed not to email or scan loan agreements and to frustrate clients who physically request copies.
Instead, borrowers are told their requests must be “cleared by bosses,” while disbursement of loans—advertised as within 48 hours—reportedly takes weeks, sometimes close to a month.
Why Conceal the Agreements?
The whistleblower alleges that the concealment serves three purposes:
1. Hiding illegal interest rates – many contracts allegedly breach ministerial interest caps.
2. Embedding unlawful terms – including hidden penalties, extra installments, and tracker fees.
3. Blocking legal redress – without a copy of the agreement, customers cannot sue or file regulatory complaints.
“Without a copy of the agreement, customers cannot file suit or seek redress. This ensures Fincredit maintains uncontested control over the vehicles,” the letter reads.
Breach of Consumer and Regulatory Laws
The disclosure further points to violations of consumer protection laws, microfinance transparency rules, and data privacy rights, particularly through the installation of vehicle trackers via the IOPGPS app without documented customer consent.
These alleged practices, if proven, could amount to systemic fraud, regulatory non-compliance, and abuse of consumer rights.
Public Outcry Growing
The whistleblower’s disclosure follows a recent letter by customer Daphine Batwiiba, which circulated on social media calling for an investigation into Fincredit’s practices. The whistleblower says her concerns “reflect what many of us inside the company have witnessed for years—but remained silent about.”
“I can no longer participate in what has become a coordinated act of robbery against fellow Ugandans,” the staff member wrote, appealing for UMRA to act decisively while extending whistleblower protection to employees who may face retaliation.
Fincredit and UMRA Silent
At the time of publishing this story, neither Fincredit Uganda Ltd nor UMRA had issued an official response to the allegations. Attempts to contact the company through the numbers cited in the disclosure went unanswered.
Loan Sharks in Disguise?
Uganda’s microfinance sector has faced growing criticism for predatory lending practices, especially among firms offering quick cash loans against logbooks. Regulators have repeatedly warned against hidden fees, exorbitant interest rates, and asset seizures, but enforcement remains weak.
UMRA was established in 2016 to curb such excesses, but consumer activists argue that powerful microfinance players often evade scrutiny. This case, if fully investigated, could test UMRA’s credibility and the government’s willingness to protect vulnerable borrowers.
The whistleblower has urged UMRA and Minister Kasolo to compel Fincredit to:
Release loan agreements to all customers.
Disclose full contract terms transparently.
Strictly comply with interest rate caps and consumer protection standards.
“The truth always comes to light,” the whistleblower warned. “Our people are being defrauded, and regulators must intervene.”
GOT A HOT STORY? CALL/TEXT/WHATSAPP:0777959024 OR EMAIL: redpeppertips@gmail.com
About Post Author
