JRL NEWSWATCH: “The evictors For the past five years, loan sharks have forced more than 500 Muscovites from their homes. Here’s how the industry works.” – Meduza

July 26, 2019 JRL Russia List Corruption, Law, Police, Courts, Crime, Economy, Business, Investment, Trade

“In Moscow and [environs] … ‘black creditors’ – microfinance institutions (MFOs) … deceive [debtors] and seize … homes. Meduza … [found ] almost 500 apartments lost … over the past five years without so much as a court order. … more than simply ‘squeezing’ people from their homes … possibly part of a wider, international money-laundering system. * * * … [T]he borrower signs a home equity loan … [with] disadvantageous or impossible … conditions. Sooner or later, the debtor violates the contract … their home becomes the property of the MFO or … affiliate[s] …. [d]efrauded borrowers … often evicted … [with] threats … even violence …. The average lifespan of an MFO is about 18 months …[They are] sold online for … a few thousand dollars …. MFOs change names … addresses, staff, and other company data remain[] the same. [] MFOs actively recruit investors to obtain … [funds for] loans. … [sometimes] foreign citizens and banks … implicated in international money-laundering …. Experts say … the industry is under-regulated … Russia’s State Duma recently introduced [relevant] draft legislation ….”