Beware of getting loans with ATM card as collateral

Alexandoy

VIP Contributor
In our country it is common for lenders to hold the ATM card of the borrower as collateral (with a certification from the borrower to avoid legal trouble). Take for instance a minimum wage earner who needs big money to buy a motorcycle for his daily travels. He would borrow money and surrender his ATM card so that the lender can withdraw the borrower’s salary every payday which is the installment of the loan.

Usually loans like this is usurious with high interest rate of 20% for a month or 2 months or even 3 months, that’s still very high. Making it worse is that you lose your right to your ATM card. What if there is an emergency? Lenders have no compassion but they do that to have assurance of payment to the loan.
 

Augusta

Valued Contributor
You are so right and I hope that does this see reasons to desist from it. I can't even try this with my ATM card when I know it can be manipulated with. It's the same with some loan sites requesting for ones bvn to get a loan. These are two things I can't give out for any loan
 
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Sammyesx

Verified member
It is not a common practice where am from but in the real sense of it, I don't think it is cool, there should be a stipulated time frame giving to debtor before such kind of if allow should be taken, though it depends on both parties involved, if there is a agreement of such then no one will feel
 
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