Author: JAMES NGOYE
AfricaPress-Tanzania: THE National Identification Authority (NIDA) has warned financial institutions and other credit facilities of a growing trend of retaining people’s identification cards (IDs) as one of the items on collateral lists.
NIDA issued the warning after receiving complaints from people over the growing trend by credit entities in the country.
According to NIDA, some associations and nongovernmental organisations issuing loans to members of the public have been directing borrowers to surrender their IDs as collateral.
NIDA Information Officer Godfrey Tengeneza told the ‘africa-press ’ that an order had been issued, requiring all lenders who retained people’s IDs to return them to holders immediately.
“It is illegal for these creditors to take IDs from borrowers. That’s why we have directed them to return the IDs to the holders or surrender them to any nearby police station as soon as possible,” Mr Tengeneza noted.
According to Mr Tengeneza, holding a person’s ID is contrary to Section 12(1)&(2) and Section 20(1)(h) of the Registration and Identification of Persons Act, 1986 (R.E 2012). Mr Tengeneza said defiant entities or individuals would face legal action.
