Many people find themselves over indebted simply because half of the time they do not know what the terms of the agreement they have signed entail. Some do not even know the difference between interest and the principle amount later on the total amount of interest they are to pay. We have come across many microfins which continue to charge interest even when the loan has been written off.
CLIENTS usually complain that the balance when approached by us has more than doubled from the time the lender sent them a letter of demand. the question is when does one stop charging interest on a loan. Many bring the briefcase or car boot principle into a legal agreement. its high time we have legislation like the National Credit Act in SA enacted in Zambia.
Yes this protects both the rights of the lender and borrower but at the same time both have a duty in ensuring they enter into a fair and just agreement. What we have now is lenders taking advantage of the ignorance of the poor man on the street to make money.
Most of the debt books many organisation have are either made up dead debt which makes it costly to recover as the borrower has no means to even commit to a payment plan which is fair but watch helplessly as the security they pledged is auctioned off even then that does not cover the full debt.
At FAST Debt Managers Ltd, our approach looks at what is fair hence we review the whole debt from application to current state before acting.