Good news for Kenyan borrowers as CBK Governor PATRICK NJOROGE takes action on CRB listings-Tala, M-Shwari, Fuliza will never bother you again


Friday June 7, 2019-The Central Bank of Kenya (CBK) has come up with new regulations intended to protect borrowers especially those at risk of being blacklisted on credit reference bureaus (CRBs).

As per the new regulations, loan defaulters will soon be entitled to a 30-day notice from lenders before their names are submitted to CRBs for listing.

The regulations are expected to address rampant complaints of customers who find their names listed with CRBs without their knowledge.

Money lenders, including savings and credit co-operative societies (Saccos), microfinance institutions and banks, usually submit names of defaulters for listing without informing them.

 However, the CBK has published draft CRB regulations 2019 that prohibit them from doing so.

The draft stipulates that financial institutions intending to report a customer to CRBs should inform the person therein by writing to him or her or through an electronic means, and to also send another communication informing them about the listing, prior to listing them.

“An institution and a third party credit information provider shall notify the customer within one month before a loan becomes non-performing that the institution shall submit to a bureau the information on the loan immediately it becomes non-performing,” the draft rules stipulate.

The Kenyan DAILY POST

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