Business

Beware of money-lenders overcharging interest rates: Shandil

October 14, 2019 12:30 pm

Consumer Council Chief Executive Seema Shandil

The Consumer Council is warning Fijians to be beware of money lenders who are over-charging interest.

Consumer Council Chief Executive Seema Shandil revealed that borrowers are hesitant to go-to money lenders because of high rates.

Shandil clarified the legal rate within which lenders can charge interest, and also highlighted that lenders often take advantage of borrower’s vulnerability, charging higher interest.

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“The money lenders can only charge up to 12% as per the money lending activities. They cannot charge anything more than 12-per cent but we have received complaints because you know, the people need money because they are faced with some difficulties so they end up with people who are lending money and they agree to pay the interest rate more than 12 percent however they can only charge 12 percent, that is the legal amount they can charge.”

The council is also warning money lenders to operate within their legal rate as stipulated under the legislation to charge no higher than 12 percent interest.