/ 17 May 1999

MICROLENDERS OPPOSE CONTROL

THE Association of Microlenders and Associated Consumers has objected to latest government proposals to regulate the industry, claiming the planned controls will close it down. The proposed regulations include capping interest rates from the current allowable 30% per month to 15,83% a month, or 190% a year. Association MD Henk Vivier says if the regulations effectively close down the microlending industry “people will turn to loan sharks”.