A whistleblower is requesting concerned authorities to look into lending/ business practices at Platinum Credit Uganda Limited which they say warrant an investigation.
Founded in 2002, Platinum Credit Uganda Limited is a Microfinance Company licensed in Uganda under the Company’s Act and regulated by the Uganda Microfinance Regulation Authority (UMRA).
One of the issues the whistleblower raises is contract transparency. It is alleged that loan agreements contain clauses that may not meet full disclosure requirements.
It is further alleged that critical terms regarding property seizure appear to be obscured within complex documentation.
When it comes to Loan Term Enforcement, the whistleblower report in our possession alleges that properties are being seized before stated loan terms expire.
That borrowers have continued to report inconsistent application of contract terms.
“We please request your investigative team to: Review Platinum’s lending documentation and practices, investigate compliance with mortgage lending regulations, examine property seizure procedures and consider establishing a channel for affected borrowers to report experiences,” the whistleblower prays.
Platinum Credit Uganda Limited has been contacted for a comment.
We are prepared to provide additional documentation or testimony as needed
President Yoweri Museveni recently urged the judiciary to take action against exploitative money lending practices in Uganda.
He criticized high interest rates charged by money lenders and emphasized the need for new laws to regulate these practices.
Museveni directed the Attorney General to introduce specific laws to criminalize errant money lenders, aiming to protect Ugandans from predatory lending.
He highlighted that current laws are inadequate and noted that exploitative lending poses a threat to Uganda’s economic stability.
Following the President Museveni’s concerns, the the government has moved to cap money lenders interest rate.
This move comes amid growing public anger and a series of incidents highlighting the unethical behaviour of some moneylenders.
A legal notice issued under the Tier 4 Microfinance Institutions and Money Lenders Act, Cap. 61, has capped the maximum interest rate that money lenders can charge at 33.6% annually.
The notice also dictates that the “maximum interest rate that a money lender shall charge on the principle or the actual sum of the money advanced as a loan to a borrower is 2.8% per month.”
DEAR READER,
HAVE YOU EVER BEEN TREATED UNFAIRLY BY ANY OF UGANDA’S COMMERCIAL BANKS, MDIs, MONEY LENDERS, SACCOs OR OTHER FINANCIAL INSTITUTIONS (credit unions, insurance companies, and investment companies)? TELL US YOUR STORY! CALL/TEXT/WHATSAPP:
SOURCE PROTECTION/CONFIDENTIALITY IS OUR NO.1 PRIORITY.
About Post Author
