The Bank of Ghana (BoG) has announced that charges not disclosed to a borrower in a loan agreement should be considered null and void.

Describing borrowers who may suffer such ordeal as victims, the Bank of Ghana also directed commercial banks and lenders to refund such monies to the borrowers.

According to some consumers, this intervention was long overdue and would help to overcome the losses they may have acquired in their quest to pay back loans they took from banks and other financial institutions.

In an interview with Joy Business, some of them admitted to have fallen prey to such schemes by some banks and microfinance organisations.

“Bank of Ghana is on course because I am a victim of that situation and sometimes, some of the banks and financial institutions will tell you that the loan is granted with no commitment fee.  But you realise that your loan deductions become so huge that you divide it by the total duration and realise that you can’t tell exactly where the remaining money is coming from”, a male consumer said.

Some of them also agreed to Bank of Ghana’s directives that customers who have experienced this type of situation be refunded their money.

“If the authoritative body, BoG has examined it and found out it is very needful for customers of this institutions to have their money back, then I support it. Let the money be refunded so that customers will be happy and be able to take care of their families”, another consumer added.

They also urged the Bank of Ghana to set up rules and regulations to guide loan disbursements and also sanction institutions who are engaged in this activity.

The Central Bank also directed lenders to make sure that before a borrower signs a loan agreement, they are given what is called “Pre-Agreement Truth” in lending statement (Similar to Proforma Invoice) that summarises the terms and conditions associated with the loan.