Banks defrauding customers on loans

While Kenyans support Central Bank of Kenya’s effort to rein in runaway interest rates being charged by banks and other financial institutions, the CBK governor should also look into cases where banks are fleecing borrowers.

Some banks have been levying the wrong interest rates on credit facilities and when queried, they blame it on new inexperienced staff or malfunctioning software.

I am convinced banks are deliberately overcharging customers on loans and overdrafts. This is not a case of hidden charges but outright theft!

What is baffling is that interest rates reflected on most customer care computer screens reflect nothing unusual but the accrued interest applied at the end of the month indicate there is a problem or tampering.

CBK should immediately embark on auditing the integrity of bank credit software to ensure banks are not manipulating credit software system parameters with the aim of overcharging on loans to report abnormal profits.

It should conduct independent surveys to determine the extent of the problem as majority of customers are not aware they have been overcharged

It should hold to account IT directors of banks under whose watch this fraud is happening.