Carefully studying Key Facts Documents and Consumer Protection Guidelines before signing contracts for accessing financial services from supervised financial institutions can enable one avoid excessive costs of loans, Dr. Michael Atingi-Ego, Deputy Governor, Bank of Uganda, has said.
In general, he further said, being “forewarned and forearmed” with the powerful knowledge of what you will be paying back and when, as well as your rights as a borrower from a supervised financial institution will enable you to protect yourself against losing your collateral.
“However, this is not the case with loan sharks who do not provide full information from the onset, but instead tempt borrowers with quick cash, only to end up charging an arm and a leg as they extract their proverbial pound of flesh when you inevitably struggle to pay back due to unfairly high interest rates,” he said.
He made the remarks while officiating at the handover the Nakaloke Health Centre III in Mbale district. To read his entire speech, click on this link. Source – Bank of Uganda