Money lender’s 30% dilemma at Small Claims Court

MBABANE – A money lender yesterday left the Small Claims Court an unhappy man after the commissioner addressed issues of the law governing interests in the country.

Money lenders are governed by the Financial Services Regulatory Authority (FSRA).

Amos Lukhele had taken Richard Barbosa to court over his owed money when the commissioner addressed issues of the law.

Lukhele submitted that he borrowed Barbosa a sum of E4 000 at 30 per cent interest last year.

However, he stated that Barbosa opted to pay in instalments as opposed to paying the full amount.

Lukhele told the court that Barbosa skipped some months without paying before he actually ceased paying him.

“I used to call him and he would promise to pay the next day. Sometimes, he shouted at me resulting in us not finalising our talks. I then decided to seek remedy before this court,” Lukhele said.

Asked if he had a licence to conduct his business, Lukhele responded to the affirmative.

Interest

When asked about the 30 per cent interest charge and if the scale was in line with the law, Lukhele responded that it was 15 per cent before stating that he was not sure.

However, he was quick to state that he entered into an agreement with Barbosa after he made himself clear about the interest.

“When dealing with clients, we work on an agreement. It is up to the client whether he or she accepts the written agreement or not. We once argued over the interest,” Lukhele submitted.

The commissioner told Lukhele that the law must come to the fore whenever dealing with his clients.

Lukhele submitted that he only wanted the owed money as opposed to the interest.

When stating his side of the story, Barbosa admitted that he borrowed E4 000 from Lukhele last year.

However, he told the court that he was irked by the 30 per cent interest.

“I used to pay and I am not sure how much I owe him now. I made the payment

through Mobile Money, however, he refused to give me receipts after the payments,” submitted Barbosa.

In response, Lukhele stated that there was no way he could have prepared a receipt for a Mobile Money payment.

“Why didn’t you ask the receipt from Mobile Money?” Lukhele asked Barbosa.

The commissioner then asked Lukhele to take the court through the payments made by Barbosa. His statements pointed out that Barbosa paid him E6 930.

Statement

“Do you confirm that you received the amount reflected in your statement?” Dlamini asked Lukhele, who responded to the affirmative.

Lukhele stated that the interest generated more interest. When asked about the law governing interest, Lukhele mentioned that he was not aware of any law. He made it known that he used the company

regulations.

“You have to refer to the FSRA Act when conducting your business. The Act is clear about interest and the court will have to issue a verdict based on that law,” the commissioner told Lukhele.

In response, Lukhele stated that in as much as the commissioner was speaking of the law, he was not at all happy as his business was running at a loss.

He stated that his business required rent and salaries for his employees. He mentioned that he also earned a salary from his business.

“I have to pay my employees according to the gazette. I have no problem even though it will be like Barbosa took a knobkerrie and hit me to death. For the sake of progress, I have no problem,” he said.

Lukhele was ordered to furnish the court with his trading licence pending the verdict today.