The Uganda Police Force in the Wamala Region has issued a strong warning to money lenders, cautioning them against engaging in unlawful practices or risk facing legal action.
Speaking on the matter, Wamala Regional Police spokesperson Lameck Kigozi raised concern over the increasing number of complaints involving lenders mishandling clients’ property in ways that violate the law.
Kigozi noted that some lenders are taking advantage of borrowers by making them sign agreements they do not fully understand, which are often not legally binding or fairly structured.
He explained that such actions have led to cases where individuals lose their property under questionable circumstances.
“Some money lenders are taking people’s property in questionable circumstances after making them sign agreements that are not properly understood or legally enforced, this is unlawful and will not be tolerated,” he said.
Police further revealed that in several instances, borrowers are compelled to sign documents that effectively transfer ownership of their property to lenders even before any loan default occurs.
This, authorities say, exposes clients to serious exploitation and abuse.
The police have warned that such practices may amount to fraud and misuse of financial authority.
They emphasized that all money lenders must operate within the legal framework, ensuring transparency, fairness, and respect for the rights of borrowers.
Kigozi added that strict action will be taken against those who fail to comply with the law, including arrest and prosecution.
Members of the public have also been encouraged to report any incidents involving illegal property seizure or coercion into unfair agreements.
The warning comes amid a growing number of complaints from residents across the Wamala Region, prompting authorities to step up enforcement efforts to protect vulnerable borrowers from exploitation.
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