Government warns against illegal money lenders
Written by David Gwenyemera on September 1, 2021
Government has warned the public against borrowing money from unlicensed microfinance firms to avoid making losses.
Speaking to the press at the Uganda Media Centre, the executive director of Uganda Microfinance Regulatory Authority (UMRA), Edith Tusubira said they were alerted about the same blander, thus appealing to the general public about the effectiveness of the Tier Four Microfinance Institutions and Money Lenders’ Act 2016.
In the Act, Section 84 of the Tier Four Microfinance Institutions and Money Lenders Act, 2016 prohibits any one from conducting money lending business without a licence, therefore, Tusubira said the illegal money lending companies are taking advantage of desperate people affected by Covid-19 pandemic to cheat them.
UMRA’s legal officer Sheila Birungi said several borrowers don’t read the loan agreements so they end up signing what they don’t understand.