Ashaiman: Lenders abandon courts; pursue debtors in shrines

It is becoming the norm for lenders in the Ashaiman Municipality to retrieve money owed them by debtors at shrines because according to them, the court system has failed them.

Mediators at the Alternative Dispute Resolution (ADR) Centre at Ashaiman revealed this in their annual report.

According to them, “many are those who said they would not go to the court again but adopt the alternative method by going to the shrine to retrieve their monies or invoke the power of smaller gods on other parties to make themselves satisfied.”

They indicated that some lenders who were referred to the courts from the ADR Centre reported that after going through all the needed court procedures and hearing, their monies were not retrieved.

“Some also complain bitterly due to the expenses incurred as filing fees and other fees which had been collected and yet they were not able to recover their monies for them.”

The mediators said the country must take a second look at debt recovery laws as the current court system makes it difficult retrieving monies from debtors who had no assets to be auctioned.

The ADR Centre received 251 debts cases in 2017, showing a reduction in cases ofover the 314 handed in 2016.

They revealed that debt recovery cases had been a severe problem for the Centre since its inception because some of the debtors used loans they contract on funerals and other unproductive ventures.

The high-interest rate on loans was also seen as a key factor for defaults in repayments, while micro-finance operators also defaulted in paying contributors after their agents abscond.

Source: GNA

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