Money lenders warned against recovering loans at night
Kitgum district leaders have warned money lenders against conducting loan recoveries at night.
Speaking during a meeting with money lenders on Thursday in Kitgum Municipality, Hajji Marijan Walire, the Kitgum Deputy Resident District Commissioner, noted that such action poses security risks to both borrowers and loan recovery officers.
Walire says security personnel have received numerous complaints about money lenders harassing borrowers at night under the guise of conducting loan recoveries.
Walire highlighted the dangers of night loan recoveries, citing instances where loan officers have been attacked or beaten by the family members of the borrowers.
Peter Oyesigye, Kitgum District Police Commander asked the leaders to sensitize the community, especially those intending to borrow loans about their rights and responsibilities.
Oyesigye also cautioned money lenders against giving loans to security personnel, especially police, without recommendations from unit commanders.
James Okello P’Okidi, the Community Development Officer for Kitgum District, says many people lack understanding of how to borrow loans arguing that there is a need for various stakeholders to educate them.
Kitgum District Commercial Officer, Paul Nyeko however expressed concerns about unregistered money lenders.
He says over 30 money lenders are currently operating in Kitgum district, but less than half have signed a Memorandum of Understanding (MoU) or registered with the district or municipal authorities.
Jane Abalo, a secondhand cloth vendor in Kitgum Municipality expressed a sigh of relief from what she describes as persistent harassment from the money lenders.
Abalo says that she has received numerous threats and intimidation from the lenders at night.
Abonga Stephen, who represented the Money lenders pledged to comply with the regulations.
“We understand the concerns and will adjust our operations accordingly,” he said.
Last month while speaking at the 8th Annual Conference of the Southern and Eastern Africa Chief Justices, President Museveni condemned the high interest rates imposed by money lenders, describing them as exploitative and a threat to Uganda’s economic stability when not properly regulated.