Blue Financial Services Ltd, the South African Microfinance Institution which lost its operating license in Rwanda, early this year, due to malpractice and misreporting of its operations has said it will submit information to the Central Bank concerning its clients who will fail to pay back their loans.
While the MFI is still in the process of liquidation, as demanded by the Central Bank, it says it will take action against its debtors.
In an interview with Business Times last week, Theo Van Rooyen the Roaming Country Manager of Blue Financial Services said that they are considering taking legal action against any defaulters.
“The Central Bank has said it’s important that our clients pay us. All those people that do not pay including those from Blue Financial Services even if we are leaving will be on that credit list,” he said.
Though its operations have been halted, Blue says collections on outstanding loans will continue.
“It is important for our clients out there not to stop paying us because it will have repercussions. Any client that is not sure when they are paying us, they must contact us,” Van Rooyen said.
Blue Financial Services was offering a wide range of financial services including one to three months salary advances, three to 24 months personal loans and loans relating to home improvement, education and debt consolidation
With a client base of approximately 1600, the company says it is currently in the process of collecting outstanding loans worth Rwf490million.
To enhance access to credit, recently the Central Bank rolled out a comprehensive legal framework that regulates the establishment and operation of credit information system.
In addition the Central Bank licensed a private credit reference bureau, Credit Reference Bureau (CRB) Africa to offer credit reports on demand.
While credit information system will mainly serve banks, microfinance institutions and other credit institutions operating in Rwanda can access it too.