October 21, 2020

Ukrainian citizens want to ban microloans

Ukrainian citizens want to ban microloans

The popularity of consumer lending in the country has grown continuously over the past few years. Now Ukrainians ask the president to ban the offices of "quick loans".

In many cities of Ukraine, there are much moremicroloan outlets than pawn shops, pharmacies and even grocery stores. According to the National Bank, the consumer lending industry has been growing rapidly for four years in a row. In 2018, residents of Ukraine received more than 150 billion hryvnia from private lenders, and in 2019 this amount exceeded 200 billion.

At the same time, many of the borrowers are far from the mostwealthy people. Most of them take out a loan due to illness or lack of livelihood. If the money cannot be returned on time, the client gets into huge debts, since such offices charge very high interest rates.

Next, the usual method of pressure on the debtor is used - threats, letters, phone calls to the client and his relatives.

A citizen of Ukraine Guliy Dmitry wrote a petition toPresident Zelensky with a request to revoke the licenses of all microloans in the country. The petition states that debtors often face outright wrongdoing on the part of the collectors, to which the police do not react at all. Dmitry writes:

Such companies charge huge interest andfines. Then the real pursuit begins. Sometimes these companies harass even those who are not involved in the loan. There were cases of driving to suicide. In most cases, the police do not react to people's statements and leave them without any protection.

You can read the petition here.

Recall that a bill on the procedure for confiscating cryptocurrencies and control on the Internet was submitted to the Verkhovna Rada.

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