Loan shark left with egg on face
A LOAN shark operating an unregistered money lending business and charging clients exorbitant interest rates found no joy last week after a community court chastised her for operating an illegal business.
The loan shark, Gladys Zunidza had dragged Tatenda Mahachi to Chief Makoni’s community court, demanding US$1 090 after lending him US$800 last year.
Zunidza was left with an egg on her face when the court ruled that she was not entitled to any interest as she was not remitting tax to Government.
“Mahachi borrowed US$800 from me on November 9, 2023 when he wanted to buy a car under the rent-to-buy scheme. The car was being sold for US$1 000, which Mahachi did not have. He begged me to avail the money and promised to pay it back with interest.
“We had a written agreement, and on December 8, 2023, he paid the interest of US$180 and on January 9, 2024, he was supposed to give me another US$180, but defaulted. He paid back US$150 in three instalments in January.
“On February 9, 2024 he was supposed to give me another US$180, but he defaulted.
The same happened on March 9 when he was supposed to pay me US$180 per month as interest for four months and return the principal amount of US$800 in the fourth month. He did not do so, but started giving excuses. He only paid back an interest of US$360,” she told the court.
Mahachi did not deny owing Zunidza money, but pleaded with the court to be given
a week to pay back all her dues including the interest.
“It is true that I borrowed Zunidza some money. I used the money to purchase a motor vehicle which I use for pirating. I was referred to Zunidza by my sister who once got a loan from her. At the moment, business is very low, so I am finding it difficult to pay back the money.
“The US$360 I paid her came from my relatives. My mother who is a pensioner applied for a loan of US$700 so that I repay Zunidza her money. The loan will be disbursed in her account next week,” he pleaded with the court.
However, in his ruling Chief Makoni said Zunidza had approached the court with dirty hands as she was operating an illegal money lending business.
He said she was operating the business without the requisite licence in violation of the money lending laws of the land.
He further ruled that Zunidza is only entitled to the principal amount she gave Mahachi without any interest.
“There is undisputable evidence that Mahachi owes Zunidza some money. However, there is also evidence that Zunidza is operating an illegal money lending business. You need to formalise your business and operate within the confines of the laws of the land.
“You cannot charge other people interests while not remitting tax to Government. Mahachi only owes you US$800, of which he has already paid back US$360. Mahachi should pay the outstanding US$440 within seven days. Mahachi will also bear Zunidza’s cost of the lawsuit which is US$60,” ruled Chief Makoni.