Police Warn Money Lenders Over Illegal Property Seizures in Wamala

Police in the Wamala Region have issued a stern warning to money lenders operating in the area, urging them to stop engaging in illegal practices or face prosecution.

According to Lameck Kigozi, the Wamala Police spokesperson, authorities are increasingly concerned about how some lenders handle clients’ property, often in violation of the law.

“Some money lenders are taking people’s property in questionable circumstances after making them sign agreements that are not properly understood or legally enforced,” Kigozi said. “This is unlawful and will not be tolerated.”

Police say that in many cases, borrowers are required to sign documents that effectively transfer ownership of their property to lenders even before default occurs, leaving them highly vulnerable to exploitation.

Authorities warn that such practices may amount to fraud and abuse of financial power, emphasizing that all money lenders must operate within the legal framework governing financial transactions, including ensuring transparency, fairness, and respect for borrowers’ rights.

“We are advising all money lenders to follow the law when conducting their business. Anyone found operating outside the legal framework will be arrested and charged accordingly,” Kigozi warned.

Police have also encouraged members of the public to report incidents where property has been unlawfully seized or where individuals have been coerced into signing unfair agreements.

The crackdown follows a rise in complaints from residents across the region, underscoring the need for stricter regulation and enforcement to protect vulnerable borrowers from exploitation.