pressug.com News 24 7
Related Articles
KAMPALA – A concerned borrower has petitioned the Minister of Finance, Hon. Matia Kasaija, accusing Fincredit Uganda Ltd of predatory lending practices that exploit desperate car owners through disguised sales agreements and exorbitant interest rates.
In a detailed letter dated September 22, 2025, the borrower (names withheld) alleged that Fincredit and other logbook lenders are violating the government’s interest cap of 33.6% per annum by charging annualized rates of over 100%. She revealed that she borrowed UGX 4.2 million but was required to repay nearly UGX 6.8 million in six months, effectively doubling the debt burden.
“Before receiving the loan, I was asked to sign documents I did not fully understand—including a car sale agreement and a Power of Attorney—executed before any money was disbursed,” she noted in her letter.
Advertisements
The petition further claims that Fincredit inserts hidden installments into repayment schedules, uses uncertified mechanics as valuers, and withholds valuation reports from borrowers.
Widespread Practices in the Industry
The borrower stressed that Fincredit is not alone, citing similar practices among Platinum Credit, Mogo Uganda, and other city-based lenders. Borrowers, she said, are systematically forced into simulated asset transfers that strip them of ownership rights while exposing them to repossession.
She also accused sections of the judiciary of enabling lenders by issuing ex parte rulings that allow car seizures without giving borrowers a chance to be heard. “Court bailiffs execute these orders by pretending the car was stolen, when in fact it was repossessed under a simulated sale,” she wrote.
The borrower questioned why the government has remained silent despite repeated public complaints about logbook lenders. “Was the interest cap a joke? Or was it meant to protect Ugandans from precisely this kind of exploitation?” she asked.
She has appealed to the Finance Ministry to urgently audit Fincredit and other car lending companies, warning that thousands of struggling Ugandans remain trapped in similar debt cycles.
As of press time, neither Fincredit Uganda Ltd nor the Ministry of Finance had publicly responded to the allegations.
GOT A HOT STORY? CALL/TEXT/WHATSAPP: 0777959024 OR EMAIL: [email protected]
