Borrower seeks 58m UGX from money lender to impound his vehicle :: Uganda Radionetwork

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However, he adds that without any court order or consent, with the help of a police officer from the Mbarara police station, Letshego violently took possession of his truck on May 31, 2019 and charged him with alleged misconduct. to its loan obligations. When the truck was seized, he was said to have transported a consignment to Rwanda.

Letshego Uganda Limited, a Tier IV microfinance institution, has been taken to court by a client seeking to recover more than 58 million shillings in compensation for the seizure of his car.

The client, Geoffrey Kiwanuka Nsubuga, claims to have obtained a loan of 100 million shillings from Letshego on October 4, 2018, to finance the purchase of a commercial truck registered UBE 170C. Nsubuga says that after registering the truck, he deposited his original logbook with Letshego Uganda Limited as security for the loan.

He explains that since then, he has respected the loan contract except for the months of February and March 2019 when he experienced financial problems related to the mechanical breakdown of the same vehicle. Even then, he says, he informed the money lender of the challenges.

However, he adds that without any court order or consent, with the help of a police officer from the Mbarara police station, Letshego violently took possession of his truck on May 31, 2019 and charged him with alleged misconduct. to its loan obligations. When the truck was seized, he was said to have transported a consignment to Rwanda.

Kiwanuka alleges that after some time the truck was removed from the Mbarara police station, where it was taken for the first time, and brought it to its offices in Kampala where it remains to this day. He says the actions cost him income and livelihood for which he seeks compensation of 58.8 million shillings.

But Letshego also filed a counterclaim against Kiwanuka and its loan guarantees Kulda Nabiryo and Daniel Nsubuga. The company maintains that the said loan was made to Kiwanuka on the basis of an agreement that he pays it within 24 months with installments of 6.3 million shillings per month.

The company says the Kiwanuka loan facility was secured with three motor vehicles; registration number UBE 701E, UAG 964P and UAH 093X for which he signed a memorandum of deposit. He is said to have made payments on his loan facility, but has accumulated notices of default totaling 70.3 million shillings.

The records indicate that they had agreed that after failing to meet his obligations, Letshego had the right to seize the security property and if the defect had not been rectified within 14 days, his security would be sold.

As a result, Letshego says, they only found one of the three vehicles that sold for 65 million shillings. The company says the borrower now has a balance of 70 million shillings covering part of the principal and accrued interest. The cases are both before the Commercial Division of the High Court.

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