Bills MicroCredit inspired debt recovery courts will help clear backlog of cases – Chief Justice

Chief Justice of the Republic, Justice Gertrude Araba Sackey Torkornoo has stated that the establishment of the debt and claims recovery courts which was inspired by the enterprise of Bills MicroCredit (Quick Credit & Investment Micro-Credit Ltd) in 12 selected district courts in Accra and Kumasi, will help clear the backlog of cases pending mostly in district courts across the country.

Addressing attendees of a ceremony to launch the small claims debt recovery courts at the forecourt of the district court, La in Accra today, Tuesday, 6 August 2024, the Chief Justice said her office recently began to notice a significant increase in the number of small claims filed in the District Courts of Ghana and the statistics pointed to the fact that something urgent had to be done about the situation.

Challenging statistics

This fact according to Justice Torkornoo, “was confirmed by the returns presented on the physical count of cases in District Courts across the country” by her office, and “an analysis of this development” the Chief Justice says “revealed that the spike in the caseload of small claims was the result of thousands of new cases filed by a company called Bills MicroCredit (Quick Credit & Investment Micro-Credit Ltd for the recovery of debt).”

“[To have a deeper] understanding and appreciation of the issue, the quality assurance unit and the monitoring department of the Judicial Service sampled seven (7) District Courts in Accra – Adenta District Courts 1 & 2, Teshie District Court, Sowutuom District Court, Ashaiman District Court, Weija District Court and Gbese District Court – to determine the quantum of the claims in order to find a solution to the increasing caseload of the courts.

“The findings in the data were telling. In Adenta District Courts 1 & 2, the total active cases pending as of May 2024 stood at 773 cases. Out of this number, Quick Credit & Investment Micro-Credit Ltd alone had filed a total of 120 cases representing approximately 15% of the total active cases pending in the court. The data further revealed that over 70% of the total cases filed by Quick Credit & Investment Micro-Credit Ltd were for claims less than GH₵5000,” the Chief Justice remarked.

“This picture in Adenta was similar to the situation in the other five District Courts sampled. While the company’s share of active cases pending before these courts varied from 14%, 19%, 22%, and 39% to as high as 43% of the caseload in the sampled courts, the common theme in the data was clear – over 70% of the total cases filed by Quick Credit & Investment Micro-Credit Ltd in all these seven courts were for claims less than GH₵5000.

“This development significantly increased the volume of cases before the typically loaded calendars of most of the District Courts under review. With the increase in the caseload of small claims filed by Quick Credit, we saw a real threat of defeat of the goals of the Court Shift System unless the new circumstances were responded to with appropriate measures,” Justice Torkornoo further remarked.

Constructive engagement

To deal with this rather challenging situation, the Chief Justice said constructive engagement between the Judicial Service and the leadership of Bills MicroCredit (Quick Credit & Investment Micro-Credit Ltd), and in the true spirit of public-private partnership for the promotion of the ultimate ends of justice, a solution was designed and it is this solution that has found expression in [the establishment of the debt and claims recovery courts].

“The Small Claims and Debt Recovery Courts which will initially operate on a pilot basis, would cover a total of 12 courts, eight (8) in the Greater Accra Region and four (4) in Ashanti Regions. The courts will sit every working day in the afternoons and on Saturdays. The courts will sit from 2:00 pm to 8:00 pm on working days and 8:30 am to 4:00 pm on Saturdays.

“For the Greater Accra Region, District Court, Ashaiman, District Court, Teshie, District Court, Kasoa and this court, District Court, La, will operate as the Saturday courts while District Court, Weija, District Court, Sowutuom, District Court ‘2’, Adenta and District Court, Gbese will operate as the weekday afternoon courts,” Justice Gertrude Torkornoo said.

“For the Ashanti Region, District Court ‘2’, Asokwa and District Court ‘1’, Prempeh Assembly Hall will operate as the Saturday courts, while Circuit Court ‘2’, Asokwa and Asokwa Circuit Court Conference Hall will operate as the weekday afternoon courts.

“It is our expectation that with the launch of these Small Claims Debt Recovery Courts and the cooperation of citizens, and the businesses involved, the nation can confront head-on and speedily, the challenge of the nearly 55,000 claims that Quick Credit & Investment Micro-Credit Ltd alone,” the Chief Justice added.

Timely intervention

Chairman of Bills MicroCredit formerly known as Quick Credit & Investment Micro-Credit Ltd, Mr Richard Quaye, in his address, noted that the establishment of the small claims court is a demonstration of the commitment of the Chief Justice and the Judicial Service in ensuring that investment of investor is protected.

Mr Quaye observed that over the years, Bills MicroCredit has seen an increasing number of clients seeking their services. This high demand according to the board chairman, reflects a growing trust in the company’s commitment to the financial well-being of its clients as the number one micro-credit institution in the country.

“However, with growth comes challenges. One significant challenge we have faced is the sheer volume of defaulters resulting in our need to resort to the courts for recovery of over 30,000 claims filed by our company seeking expedited hearings. These cases often stem from our relentless pursuit to ensure that the credit extended to our clients is recovered promptly, thereby sustaining our ability to serve more Ghanaians.

“In response to this challenge, it is with great appreciation and admiration that I acknowledge the swift action under the leadership of the Chief Justice. The establishment of the new small claims court will greatly alleviate the burden on our judicial system, ensuring that cases are resolved more quickly and efficiently,” Mr Richard Quaye said.

“This initiative not only underscores the proactive stance of the Judicial Service in addressing the needs of businesses like ours but also highlights the importance of a robust legal framework in fostering a healthy economic environment.

“An expedited legal process benefits everyone—creditors, debtors, and the wider community—by ensuring that financial disputes are resolved promptly, thereby maintaining trust in the financial and judicial systems and encouraging continued economic activity,” he added.

Reporting by Wilberforce Asare in Accra

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