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Microfinance Association: We condemn practices in violation of law and ethics in debt collection

Microfinance Association: We condemn practices in violation of law and ethics in

The Albanian Microfinance Association, with an official response, has expressed its distance from those loan collection companies, which operate through illegal, unethical, corrupt practices.

The association has brought to attention a position held since July 19, 2022 on the same issue, where it was stated that the Albanian Microfinance Association and its members obey the Code of Conduct and Good Practices, approved by a special decision of the Assembly of Members , and in this context they do not adopt or follow illegal or unethical practices in their activity.

According to the Association, each member acts in accordance with the legislative and regulatory framework in force, confirmed by the licensing and periodic supervision of the Bank of Albania, and any deviation from this framework is addressed with special legal or administrative measures.

" Microcredit institutions hold the same activity license as the collection companies

debt, but it should be understood by the market that their activity changes and is not the same.

The activity of the Members of the Albanian Microfinance Association consists in lending to individuals and businesses, and these institutions do not buy bad loans from any bank or other lending institution. Lending by all Members is carried out in accordance with the repayment capacity and the tendency of each borrower to fulfill contractual obligations.

That said, we take every measure to inform and encourage all our customers to

are informed in detail about these obligations, as well as the terms and conditions of each loan,

before accepting the obligation and taking it over. In the same way, all available means of communication are used to inform customers about the process that is followed when this loan is not paid by them ," the response states.

The Albanian Microfinance Association and its members are determined to intensify their efforts in terms of financial education, financial inclusion, helping the needy, eliminating the gender gap in entrepreneurship and creating jobs through entrepreneurship, and will continue to support the Albanian economy through the highest standards of exercising their activity.

"In this context, the Association welcomes cooperation with any market actor that represents and protects the interests of consumers, to coordinate these efforts for the benefit of the Albanian consumer. At the same time, we express our readiness as active actors in the lending market, to cooperate with the legislative and law-enforcement, governmental, regulatory and supervisory authorities, for the drafting of a legal and regulatory framework as complete as possible, which will determine clearly the processes and procedures of loan collection and will precisely identify all the actors involved, according to their rights and obligations, to avoid abuse, extortion and misuse of the difficult financial situation of citizens, which cause deep economic-social problems in the country, " says the Albanian Microfinance Association. Monitor

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