Kitgum district leaders warned money lenders not to collect loans at night.
At a meeting with lenders in Kitgum City on Thursday, Kitgum Deputy Resident Commissioner Haji Marijan Walele pointed out that such practices pose a security risk to both borrowers and debt collectors. .
Walire said security guards have received numerous complaints that lenders harass borrowers at night under the guise of collecting loans.
Walele highlighted the dangers of night-time loan collection, citing examples of loan officers being attacked and beaten by borrowers' families.
Kitgum District Police Commander Peter Oyeshige called on leaders to sensitize communities, especially those seeking loans, about their rights and responsibilities.
Mr. Oyesigye also warned money lenders against lending to security personnel, especially the police, without the recommendation of the commandant of the force.
Mr. James Okello Pokidi, Regional Development Officer of Kitgum District, maintained that there is a need for various stakeholders to educate them as many people do not understand how to take a loan.
However, Kitgum District Commercial Officer Paul Nyeko expressed concerns about unregistered moneylenders.
He said there are currently more than 30 money lenders operating in Kitgum district, but less than half have signed a memorandum of understanding (MoU) or registered with district or city authorities.
Jane Avalo, a second-hand cloth seller in Kitgum city, heaved a sigh of relief after facing persistent harassment from moneylenders.
Avalo said she received numerous threats and threats from her lender at night.
Mr Abonga Stephen, who represented the lender, promised to abide by regulations.
“We understand the concerns and will adjust our operations accordingly,” he said.
Speaking at the 8th Southern and Eastern African Chief Justice Conference last month, President Museveni denounced the high interest rates charged by money lenders as exploitative and, if not properly regulated, a threat to Uganda's economic stability. did.
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