Wednesday, April 17, 2024

Some Commercial Banks Are Deduction More Than One Loan Installment from One Salary

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The Fire Services Union of Zambia has written to the Bankers Association of Zambia to complain over the deduction of more than one loan installment from a single salary of its members by some Commercial Banks.

Union General Secretary Clement Mulenga says this has caused Union members to go home with nothing for many months amidst the serious economic hardships.

Mr Mulenga said the situation has been necessitated by the salary arrears and delays currently the local authorities are experiencing.

He said the Union appreciates that Banks are in business and must recover their money, but not to the extent of promoting destitution in their clients.

In a statement, Mr Mulenga has lamented that Banks should create financial capacity in their clients and not the opposite.

He has since implored the Bankers Association of Zambia to engage Commercial Banks not to be deducting more than one installment from a single salary because this is not the workers problem but the employer.

15 COMMENTS

  1. Why politely write to the Banker’s association just name and shame the banks as this is daylight robbery…I mean by the time the Banker’s Association investigates and replies it will be after a month.

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  2. Banks need to act in an ethical manner, especially as they know people are not being paid by their employers.

  3. Is there no Financial ombudsman or Regulator in Zambia to forward such complaints….Banker’s association is there to represent Banks interests as they pay subscription to it. I suspect these banks have done this to the average joe out there who has no union to represent them because they can get away with it.

  4. Nice photo of Los Angeles scrap metal imported @ a cost of Millions, by ba J0n@’s spouse.
    As P.F, & Belly G00n’z like Monday Ch@nda keep reminding us, “this is unprecedented development” BUT when these “clapped out” scrap museum specimens break down, it’s H.H’s fault.
    Only in Zambia!
    Meantime, #PFMUSTGO!

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  5. what i understand is that when one doesn’t get their salary on a monthly basis they accumulate arrears. hence when the salary comes the banks deduct all the arrears at once. eg if you get Jan – March salaries in April the bank will deduct Jan – April loan arrears

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  6. The letter was misdirected. It should have been sent to BoZ since it regulates the conduct of commercial banks in Zambia including consumer protection

  7. The problem is not the banks here. The problem is with the Government that doesn’t know the existence of the local authority workers. Someone works for a Government Institution and is not paid for three months? That’s madness. These PF thugs are busy undoing what their founder believed. They’re anti-christs.

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  8. The loan arrangement has that element. If you don’t remit it means you’re defaulting. The issue here is Fulumende that wants to prove l don’t what by not paying Council workers. The President in his statements seem to be supporting decentralisation, but in his actions he is the major frustrator of the very principles of decentralisation. Surely how do you expect people to admire to be decentralised in the Local authorities when Local authority workers are being treated like destitutes? And then you hear the head of state saying, “whoever is frustrating decentralisation l will descend on him like a thousand tones.” Now the question is who is frustrating decentralisation? Zambia manje no spata curse.

  9. thom – Which bank is going to issue loans to you if your salary is going to be irregular…do you really think the The Fire Services Union of Zambia would have complained if that was the case?

  10. They want it so if they don’t take get paid a salary they don’t have to pay back money they loaned !? And they think they have right ? No wonder this country is bankrupt…

  11. The letter was adresed to wrong recepiet. The union hs clearly stated the cause of those double recoveries therefore address the leter to the cause of the problem. It’s the govt not paying yo members on time. Period

  12. The problem here is not the banks but the salary arrears and delays the local authorities are experiencing. It would be far worse for banks to close down. Loans are paid to tidy you over certain times, but loans and interests are business that keep banks solvent.

    No Bank, No economy. Sorry about out mates being squeezed. Don’t take loans, do a little side Hussle. Neither a borrower nor lender be you, this is your Bible speaking!

  13. Rob a bank even………

  14. Sorry to divert, but the picture above reminds me of the fire tenders – was it 42 at $1m each? Apparently there was a huge market fire in Mongu a few days ago and there was no fire tender in sight. The reason, the marketeers who lost their wares were given, to quote, was that; “Mongu Fire Brigade ….. says their Fire tender is in Lusaka for Servicing”

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