WEDNESDAY, DECEMBER 3, 1980
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BORROWERS ARE ENTITLED BY LAW TO MONTHLY WRITTEN STATEMENTS FROM THE MONEY LENDER SHOWING HOW THE LOAN STANDS, THAT IS, HOW MUCH HAS BEEN REPAID,
INTEREST RATE ETC. IF A BORROWER ASKS IN WRITING FOR SUCH A STATEMENT AND GIVES THE MONEY LENDER $10 FOR EXPENSES THE MONEY LENDER MUST SUPPLY THE STATEMENT WITHIN ONE MONTH FAILURE TO PROVIDE A STATEMENT RESULTS IN THE MONEY LENDER BEING UNABLE TO RECOVER ANY REPAYMENTS FOR AS LONG AS THE DEFAULT CONTINUES AND INTEREST DURING THE DEFAULT PERIOD IS TOTALLY FORFEITED- FURTHERMORE SUCH A FAILURE IS AN OFFENCE BY THE MONEY LENDER FOR WHICH THE MAXIMUM PENALTY IS A FINE OF $100 000 AND TWO YEARS IMPRISONMENT.
IF A BORROWER REPAYS A LOAN EARLY THE MONEY LENDER IS NOT ALLOWED TO CHARGE EXTRA UNLESS HE IS A MONEY LENDER SPECIALLY APPROVED BY THE GOVERNMENT.
NO MONEY LENDER CAN CHARGE COMPOUND INTEREST.
* NO MONEY LENDER CAN PREVENT A BORROWER REPAYING
BY INSTALMENTS.
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NO MONEY LENDER (UNLESS HE IS SPECIALLY APPROVED BY THE GOVERNMENT) CAN CHARGE A BORROWER ANY MONEY FOR THE COST OF NEGOTIATING OR MAKING THE LOAN UNLESS THE COST INVOLVES STAMP DUTIES OR SIMILAR DUTIES.
* NO MONEY LENDER CAN INCREASE THE RATE OF INTEREST SIMPLY ON ACCOUNT OF DEFAULT IN REPAYMENT BY A BORROWER (BUT HE CAN CHARGE THE AGREED RATE OF SIMPLE INTEREST ON THE AMOUNT IN DEFAULT).
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NO MONEY LENDER CAN TAKE OR DEMAND FROM A BORROWER, AS SECURITY, DOCUMENTS SUCH AS IDENTITY CARDS, PASSPORTS, BANK BOOKS OR PHOTOGRAPHS- IT IS AN OFFENCE TO DO SO AND CARRIES A MAXIMUM FINE OF $100 000 AND TWO YEARS IMPRISONMENT.
LOAN
THE GOVERNMENT IS DETERMINED TO BREAK THE POWER OF SHARKS', THE SPOKESMAN SAID. TO THIS END THE POLICE HAVE REDEPLOYED MORE THAN 350 PERSONNEL TO ENFORCE THE NEW PROVISIONS AND THE REGISTRAR OF MONEY LENDERS HAS FORMED A TEAM OF OFFICERS TO SCRUTINISE APPLICATIONS FOR LICENCES, HE SAID.
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