Legal Action Is The Last Option To Retrieve Loans

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By: Robert Ayanful

The manager of the Agona Nyakrom branch of the Swedru Teachers? Co-Operative Credit Union, Mr. Francis Agyin-Horbah has said applying legal action to retrieve loans from defaulters always remains the last option after series of attempts have yielded no results.
loansSpeaking to Spyghana on the effect of the use of legal action to retrieve loans from its members as it has the tendency of making them lose some of its members to other money lending institutions, Mr. Agyin-Horbah noted that before any such action is taken, the Union engage the defaulters in series of meetings and advised on the need to pay the loans to enable other applicants access the service.
He described the legal action as effective as it has made the Union retrieve greater part of the loans granted to its members, which hitherto would have gone down the drain.
He disclosed that loan delinquency could cripple the operations of any money lending institution if care is not taken.
He however blamed the inability by some members to pay loans they contract on many factors including unintended businesses and the economic crunch in the country.
Already, the Unions Head Office at Agona Swedru had dragged 23 of its members to Court over loan default.

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