Private finance firms fleece customers in Mancherial

They are setting their own rules. For instance, they are forcing their customers to register their property in money lender's name as guarantee

By Author  |  Published: 19th May 2019  9:54 pm

Mancherial: Private finance firms and money lenders from Mancherial town and certain towns of the district are reportedly fleecing gullible public by collecting exorbitant rates of interest and harassing customers.

They are indulging in wide-range of wrongdoings and taking loan from a finance firm is fraught with consequences. People end up shelling out at least 3 per cent rate of interest per month and end up registering property in the name of money lenders. Many get thrashed for delay in payment of monthly interest. One has to be careful!

Many private money lenders are accused to harassing their customers in different ways. “They are extracting somewhere between 3 and 10 per cent of rate of interest on the principal amount every month. They are setting their own rules. For instance, they are forcing their customers to register their property in the money lender’s name as guarantee,” a customer revealed, seeking anonymity.

“If you go to the firms for buying vehicles, you need to surrender documents of ownership and a key until you clear the loan. You have to sign on blank white paper before getting the financial help. The firms are roping in goons and rowdy-sheeters to terrorise customers and collect monthly instalments and interest,” a customer said.

It is learned that the lenders were imposing hefty fines on customers in case of delay in payment of instalments and principal amount. They are using the goons to terrorise the customers. They are easily able to make huge profits with in a year or two. Considering the scope of earnings, many are venturing into this field.

Ramangundam Commissioner of Police V Sathyanarayana told ‘Telangana Today’ that police would crack a whip against the private finance firms and money lenders soon. He said Police Department would carry out raids on the firms for at least a week and expose their wrongdoings. We recently came to know of illegal activities of money lenders, he added.