KAMPALA – Tier 4 Microfinance institutions and money lenders in Uganda have been advised to be cautious when dealing with borrowers after a police officer shot dead an Asian businessman in Kampala last Friday.
The advice was given by Uganda Microfinance Regulatory Authority [UMRA] in a press release condemning the killing of Uttam Bhandhari by the disgruntled policeman, Ivan Wabwire over a loan disagreement.
“Tier 4 Microfinance institutions and money lenders are required to take caution while dealing with borrowers by assessing their creditworthiness. It is also a regulatory requirement to disclose to the borrowers all transactional charges, fees, and the method of computing interest as set out in regulations (2018) and (2020) including the financial consumer protection guidelines (2019),” UMRA said in the press release published Tuesday.
UMRA which runs a toll-free telephone line condemned the killing of businessman Bhandhari, saying there are avenues for lodging complaints related to lending and borrowing exist.
“UMRA condemns the act of the borrower [Wabwire] and hereby informs the general public, that there are avenues of addressing the complaints related to lending and borrowing.”
According to police spokesperson Fred Enanga, Wabwire, now in police custody, and the late businessman who was the managing director of TFS Finance Services, disagreed over Shs 200, 000 interest Wabwire was supposed to pay after defaulting on his loan.
UMRA, established under Tier IV Microfinance Institutions and Money Lenders Act, 2016, is mandated to regulate, license and supervise all the Tier IV Microfinance institutions and money lenders in Uganda.
The Act applies to money lenders and SACCOs, non-deposit-taking microfinance institutions and self-help groups.
https://thecooperator.news/umra-ursb-summon-money-lenders-for-crucial-meeting-in-kampala/
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