I lend through a Micro-finance org. and am concerned about communication standards. I am hoping for some insight on what is normal in the industry, and should I be able to expect from such an organisations. I do not want to stop the practice, or the organisation I lend through. However, I think reporting and communication should be improved.
To be brief, while I feel they mean well, but it seems they do not feel they are accountable, nor bound by what they say. I have some specific observations which support this opinion:
Values that my loans do not “add up”. I would expect the following:
Funds Uploaded – Donations = Loans Outstanding + Lending Credit Available +/- Currency Fluctuations..I understand, when this has been raised with people it has been put down to foreign currency fluctuations, and descrepancies should be excused.
They change Transaction History, as they wish. If they realise they have made an error, they delete post. What I think should happen is another entry to correct the balance. Make reference to the error, which enable those concerned to understand the changes in the balance from moment to moment....Entries can be made to the Transaction History , at any time. An entry might be made today, which would effect yesterday's balance. I understand that some financial institutions use a system of two dates: book and value.....
It came to light that when they increased charges to borrowers, they did not updated the website. I know of no intention or effort to compensate borrowers for being overcharged.
-BR
