What Catherine Wanjiru's lawyers wrote to Kenya Women Finance Trust (KWFT);
On 26th July 2016 or thereabout you granted our client loan facility of Kenya Shillings One Million only (Kshs.1,000,000.00) which sum of money was to attract an interest of 20% per annum.
You created and registered a chattel mortgage over the milk dispensing Unit and Chiller Tank belonging to our client to secure the financial facilities granted to our client.
At all material time to this matter our client has consistently complied with her contractual obligations save for few instances when she fell in arrears for reasons well known to yourselves and of your own making.
You are entirely to blame for the financial quagmire our client found herself in as you blatantly breached your statutory obligation to review the interest rate from 20% per annum to a low 10% +4% in line with Amendments made to the Banking Act, facts of which are within your knowledge.
Despite your blatant violation of the law you proceeded to pile pressure on our client to illegally pay up levied interest rates which exponentially escalated the payment and listed our client with a Credit Reference Bureau in total disregard and violation of our client’s rights to access of credit.
On 4th September 2017 or thereabout you purported to kick start recovery process against our client without following due process.
On the foresaid date you arm-twisted and maliciously led our client to believe that you will suspend the illegal realization of the security if she pays Kenya Shillings Fifty Thousand only (Kshs.50,000.00), which amount she settled and have a balance of Kenya Shillings One Hundred and Four Thousand Six Hundred and Fifty only (Kshs.104,650.00) settled on or before 19th September 2017, which amount she has now settled, facts of which are within your knowledge.
Barely our client handed over the Kshs.50,000.00 as stated above than you and or your agents descended on the business premises of our client, situated at Dagoretti Corner, Sunny Park Building and forcibly dismantled and carted away the Milk Dispensing Unit and Chiller Tank worth Kenya Shillings Seven Hundred and Thirty Thousand Only (Kshs.730,000.00) and in the process occasioning loss of business and mental anguish to the person of our client.
Your actions bespeaks malice and is affront of justice as they failed to thread a well beaten path of debt recovery and most importantly the process of realization of securities.
OUR INSTRUCTIONS ARE TO DEMAND from you as we hereby do settlement of the foregoing claims within the next fourteen (14) days from the date hereof.
Immediate return and mounting of the Milk Dispensing Unit and Chiller Tank, to the business premises of our client;
The Milk Dispensing Unit and the Chiller Tank must be in the form and status they were prior to dismantling and carting away by yourselves.
The whole process of return and mounting of the Milk Dispensing Unit and Chiller Tank at our client’s Business Premises be supervised by Technicians from Farming Solutions Limited at your own cost.
Immediate recalculation of the interest due from the date when Amendments to the Banking Act on interest rates came into force and thereafter the immediate refund of the excess amount paid by our client.
Penalties, incidental and or recovery costs should not be factored or deducted considering that you are in breach of the law.
Furnish our client with copies of Bank Statements which clearly captures the interest rates contained in the Amendments to the Banking Act.
Furnish our client with copies of the duly registered Chattel Mortgage.
Unconditionally delisting of our client from the Credit Reference Bureau.
Admit liability of the loss of business and anguish caused to our client with a view to have amicable settlement inform of damages.
Summary of her complaint;
- Catherine took loan with KWFT (Kshs.1000,000.00) and was to service it for 24 months (Sep 2015 – Sep 2017).
- It’s on 4th September 2017 when her loan statement showed shocking loan balance of which she didn’t argue for but instead begged for up to 19th of the same month to clear the balance.
- Was advised to pay Kshs.50,000.00 of the balance and clear the remainder on or before the 19th of September 2017.
- Despite that she settled the remaining loan balance by the agreed date 19th of September, the Bank through its representatives dismantled the Milk Dispensing Unit & Chiller tank being the properties that we’re registered as her loan security.
- Though the recovery did follow due process of debt recovery, the Bank through its representatives acted unprofessionally and carted away the machine to where she has never known up to moment.
She expects justice from KWFT as follows;
- Recover her machine in good working status and its installation at the Bank’s cost.
- Compensation on businesses losses since the day her machine was taken away.
- Refund of the money she was charged by the Bank representatives to cart away the machine.