Republic Bank and Courts are deceptive with loan arrangements

Aug 17, 2016 Letters

Dear Editor,
Over the last week, three things I experienced left me wondering if there is good life for the ordinary and common citizens of this country. I am a normal citizen with a normal job and I live a normal life with a normal family.
When one notes the 50% salary increase for the Executive, the hiring of former army people to COI duties and to head state agencies, the sole sourcing by the Ministry of Health, the dismissal of employees, the loss of jobs by Guysuco workers, the everyday robberies (some which are not reported), I ask is this the good life for me as a normal citizen?  It is easy to talk but difficult to do the walk.
As a normal citizen, I would expect to be treated normally when seeking services in both the public and private sectors. But unfortunately, being a common citizen, then you are treated commonly. My first experience of common treatment is with reference to Republic Bank “Deals on Wheel” promotion. I visited this bank to inquire about a loan regarding the purchasing of an automobile. I was elated when I was told that I have qualified and would be getting a loan at a rate of 9%. I quoted two amounts and was told that based on the payback period, what my installments would be. Subsequently, I checked the amounts that I quoted using an excel loan sheet and with the 9% and payback period and saw that the calculation of the installments were lower.
In noting this, I did some calculations and found out that the bank’s installment includes a further 16.42%. This means that when you calculate your 9% with a specific payback period, the value you get must be added by a further 16.42 % which is payable to the bank. At no time this information of the further addition of 16.42 % was related to me. How fair is this to me?
My second experience is in reference to Courts Guyana Inc. Last December, I took advantage of their no down payment promotion and bought an item. I was told the payments for my installments would commence in February 2016. I completed all the related transactions, received my item and have been paying my monthly installments on time. Last week, I went to inform them, that I wish to pay off for my item.
To my dismay, the amount that I have to pay off includes the original price of my item and further $150,000. Now I would understand that the payments should be less than the original price as my installments would have been reducing it and the interest would be up to the date of payment. In fact, when I calculated including what I have been paying monthly for the last 6 months, I would end paying the original price and approximately 75% on this price in interest in the less than 9 months. I took a 3 year plan. It is like paying for interest not accumulated. When I expressed my disappointment about this, I was told that that I can look at it from any way I want. How fair is this to me?
My third experience is in reference to the Guyana Revenue Authority.  When the then Government announced the Mortgage Interest Relief (MRI) in 2013, it came indeed as relief to hundreds of first time homeowners.  I started benefiting from it from 2014 and with the system then adopted saw that every three months, the amounts calculated as the relief was deposited in my savings account which was all administered by my bank. This present government has made an amendment to the Income Tax Act which saw the taxpayer obtaining from the lending institution the Form 4 which comprises the information regarding the interested paid for the year for 2015.
Most persons would have received their MRI for the first half of 2015 under the previous system.  With the new system in place, in completing your tax return for year of income 2015, you had to include the information of the Form 4 (which was attached) and based on your computation, it would be calculated what will be the amount due to you. A cheque with your reimbursed amount would be subsequently issued to you. I followed all the procedures and have submitted my Tax Return in April of 2016.
To date, I have not heard nor received any notifications on my MRI due to me. So, I called the MRI department at GRA and was told that everything is on hold as the lending agencies have not submitted the relevant information to GRA. So I called my lending agency and was informed that the only obligation the agency had was to provide the taxpayer with the Form 4 which the taxpayer has to use to obtain their MRI. So why it is then if the agency is not obligated to do anything else, GRA cannot proceed to process taxpayers’ MRI? How fair is this to me?
The Schools’ holidays are coming to end. With no salary increase, no MRI, and mortgage and bills to be paid, my life as a normal citizen is really  common, as all that has been done so far,  is only benefiting those at the top surely not the common man down at the bottom.
Akanni Persaud

1 thoughts on “Republic Bank and Courts are deceptive with loan arrangements”

Arthur Young August 17, 2016 at 8:43 am

You should read the fine print before signing an agreement. Hire Purchase and loans are regulated by their respective laws. You are paying for your lack of knowledge of these laws.