Police have warned money lenders against taking national Identity cards as collateral from money borrowers.
Addressing journalists at Police Headquarters in Naguru on Monday, Police spokesperson Fred Enanga said it has now become a habit by money lenders to confiscate National Identity cards from the people they are demanding money yet it is against law.
“We have warned them several times but it still remains the same especially those who give out micro-loans to members of the public who don’t have security, they basically take National IDs. But it is illegal and criminal, so as the Police together with other sister security agencies we are concerned against the increased misuse of national IDs as collateral especially in the Buwenge district we have gotten so many complaints from the Busoga region and in the district of Dokolo (Lango region) together with other districts in central,” he said.
Enanga added that National IDs have no economic or monetary value and are supposed to be used exclusively for identification purposes, therefore any act of confiscation involving taking or handing over national ID as collateral is illegal.
“Taking someone’s ID denies him or her the ability to use it for identification purposes and many other transactions where National ID plays a greater role and even in the movement within the country, so we would like to call anyone whose National ID was taken as a collateral or confiscated to report to the nearest Police station for further assistance.”
He explained that under the Registration of Persons’ Act Section 77b, it is an offence if a person without authority deprives or disposes of a holder of his or her National Identification Card.
“If a person unlawfully keeps or takes possession of National Identity Card or Elian’s Identification Card that belongs to another people, it is an offence. It is also an offence if a person has more than one National Identification Card or Elian’s Identification Card that is entitled to show the person’s identity. So we shall charge any money lender in possession of peoples’ National Identity Cards under Registration of Personal’s Act Section 77,” he warned.
According to Enanga, any person who commits such an offence is liable to a fine not exceeding 48 currency points (Shs960,000) or imprisonment not exceeding three years or both.
“We also reminder these Microlenders that the Microfinance guidelines stipulate clearly that a money lender shall not take National IDs, a Pass Port a warrant card or other documents including ATM cards, Bank serving cards so Money lenders must take this clearly,” he said.
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