In Kazakhstan, authorities confiscated six mansions belonging to a private lender who extended a loan worth 500 million tenge.
In the heart of Kazakhstan, authorities are probing an alleged illegal lending operation that spanned six years and racked up more than half a billion tenge in loans to numerous citizens. This bombshell was dropped by the Financial Monitoring Agency.
Without a lending license, this wily character was still running a lucrative side hustle, leveraging one of the social media platforms and a famous classified service. The investigation is being spearheaded by the Kostanay regional department of the agency.
The Financial Monitoring Agency stated that the suspect's dodgy dealings were camouflaged as legitimate transactions, with hefty hidden interest rates of up to 100% annually. The borrowers' properties were used as collateral for these loans. In total, the devious lender concluded 72 transactions, raking in over 556 million tenge.
One of the unfortunate victims was an elderly lady hailing from Rudny who required funds for medical treatment. Tragically, she was forced to mortgage her apartment to cover her mounting debt.
According to the Agency, the pensioner was promised 13.2 million tenge with a monthly repayment plan of 600,000 tenge over two years. In reality, she only received 6 million tenge, with the remaining 7.2 million tenge representing the calculated interest. It's clear that the punishing repayment terms were untenable for citizens ensnared in these fraudulent schemes, putting their hard-earned property at risk.
Courts have authorized the seizure of six mansions and three cars belonging to the suspect, with the total worth of the confiscated property surpassing 150 million tenge.
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- ARRFR denies inaccurate social media claims about shady credit write-offs
- Spending 60,000 but paying a million: Kazakhstanis resort to loan-sharking for massage blankets
- Experts predict a decline in lending across Kazakhstan
Further Reading:
- It's crucial to be aware of the potential consequences of engaging in unlicensed lending activities, both for the lenders and the borrowers.
- Lenders risk being penalized by law enforcement, damaging their reputation, and experiencing financial difficulties due to poor loan recoveries.
- Borrowers may find themselves dealing with exorbitant interest rates, limited legal protections, and falling into debt traps that are challenging to escape.
- To acquire more specific information about unlicensed lending in Kazakhstan, localized data and reports on financial regulations and consumer protection would prove beneficial. Kazakhstan's financial regulatory bodies and consumer protection agencies could offer detailed insights into these issues.
- The unlicensed lending operation in Kazakhstan, as highlighted by the Financial Monitoring Agency, is a reminder of the potential pitfalls that come with engaging in such activities, as both lenders and borrowers can face significant challenges.
- The case of the elderly lady in Rudny, who lost her apartment due to engaging with an unlicensed lender, underscores the need to be wary of illegitimate lending schemes and seek alternative, more regulated financing options in Kazakhstan.
