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HomeCourt NewsLUSAKA RESIDENTS SUE KWACHA LOANS, MONEY LENDER

LUSAKA RESIDENTS SUE KWACHA LOANS, MONEY LENDER

By GRACE CHAILE 

TWELVE Lusaka residents have sued Kwacha Loans limited alleging that it was illegally trading as a money lender. They claim that both the Bank of Zambia and Ministry of Finance have confirmed that Kwacha Loans Limited was not licenced as a money lender at the time it disbursed loans to them.

Mr Andrew Mukupa and 11 others have sued Kwacha Loans Limited together with Hollard Insurance Limited in the Lusaka High Court as first and second defendants.

The 12 are seeking a declaration that Kwacha Loans Limited was illegally trading as a money lender without being registered and should not charge any interest on the money given to them.

They also want all agreements entered into with the lending company declared null and void on account that Kwacha Loans Limited was illegally trading as a money lender.

The litigants want the High Court to declare illegal the sale and change of ownership of the third plaintiff’s vehicle by Hollard Insurance as it was done using forged documents.

Mr Mukupa and others want an injunction restraining Kwacha Loans Limited or any of its agents from using the plaintiff’s vehicle and parking it at a neutral place.

They further seek a declaration that the interest charged by the lending company was illegal, unjustified and unconscionable, thus, be set aside.

And also, for the court to issue an order compelling the first defendant to return the vehicles the plaintiffs used as security for loans.

In a statement of claim, the 12 stated that they obtain loans from Kwacha Loans limited on different dates.

They stated that between June and December, 2022, they entered into loan agreements with Kwacha but the lending company styled the agreements as purchase agreements.

“The first defendant before it could enter into the so called purchase agreements would give the plaintiffs a document called mandatory requirements for approval which had a number of requirements but the last one being when returning to finalise agreement you are required to come with the above mentioned documentation and the car being used as security,” they said.

The plaintiffs stated that upon failure to pay one instalment, the vehicles could be grabbed and parked at the first defendant’s premises, some fail victim.

They claim that when they required to pay off, they loan, it was discovered that their vehicles were auctioned or out to a third party who have interest in the first defendant. 

“The searches yielded results in that the Bank of Zambia informed counsel to the plaintiffs via a letter dated 2nd December, 2022, that the first defendant is nor licensed under Banking and Financial Services act, 2017,”

“Fiurther the Ministry of Finance also confirmed through a lettered dated 13th February, 2023, that the first defendant was not licensed as a money lender during the period they availed loans to the plantiffs,” they stated.

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