Charumbira’s vehicle faces auction over debt

Source: Charumbira’s vehicle faces auction over debt – DailyNews Live

Farayi Machamire      4 July 2017

HARARE – President of the National Council of Zimbabwe Chiefs Fortune
Charumbira faces the imminent threat of his luxury SUV vehicle being
auctioned off after defaulting on repayments amid a crackdown on overdue
loans by banks.

People’s Own Saving Bank (POSB) has served notice of an auction of the
Toyota Land Cruiser for recovering dues from Charumbira.

The vehicle is set to go under the hammer on Friday, LM Auctioneers said
in a notice yesterday.

The senator claimed that the debt was taken up by his brother Mudavanhu

He claimed he had merely co-signed the agreement as the guarantor – a
person who agrees to repay the borrower’s debt should he or she default on
agreed repayments.

“I did not take that loan but it’s my brother’s, Mudavanhu,” Charumbira
told the Daily News yesterday.

“I am only taking care of him, ndochivanhu chedu. Kana munin’ina wako
akatadza kuwana mombe dzakakwana dzekuroora, haumubatsiri? (If you brother
is short on his bride price, will you not assist him?” he asked

Charumbira could not say how much the outstanding dues were.

“I don’t know how much, I really don’t know. The last time I talked to him
about it, it was $5 000 but I don’t know what it is now,” he said.

Banks are increasingly selling off unpaid consumer debts to collection
agencies, who are buying the liabilities for a pittance.

Increasing numbers of people who have mortgage shortfalls and other debts
are now being threatened with auctions.

Charumbira is the latest high profile person to lose his property after
African Banking Corporation last week auctioned off former Premier Service
Medical Aid Society (Psmas) chief executive officer Cuthbert Dube’s four
bedroomed Borrowdale home, seized after failing to settle a debt.

Dube’s palatial property went under the hammer last week along with
property belonging to businessman Simbarashe Mupandanyama, the group CEO
for Broadway Investments, who lost his Glen Lorne home after defaulting on
a CBZ loan.

The ongoing financial squeeze has seen a new a surge in foreclosures
representing a new wave of distressed property seizures, with many banks
no longer willing to grant struggling debtors forbearance.

Economists have urged banks to commit to responsible lending, under which
financial institutions must assess if people will be able to repay their
debt before they are advanced new loans or have their credit limit