Now you can be listed on CRB as a loan guarantor

Easiest way to get clearance from CRB Kenya online

Saccos and Commercial Banks can now report loan guarantors with the CRB Credit Reference Bureau, should the primary borrower default on the payment.

The memorial ruling was made in a case where Obadiah Gitonga had petitioned Co-operative Bank of hostility by listing him with the CRB after a school he guaranteed defaulted on a loan.

In her decision, Justice Grace Nzioka ruled, “The referral of any data to the CRB is a provision of the law, and the defendant as a financial institution is empowered to do the same.”

She declined to grant Obadiah’s prayer that the bank delists him by telling that his lack of information about the defaulted payment did not release him from the contract, supplementing that he should have settled the amount when he learned of the same.

The plaintiff had insured loans advanced by Chogoria Junior School, where he is an executive, using two parcels of land.

The bank served him with notification that the school had defaulted and allowed him to dispose of the land to realise a Ksh952,262 debt.

Several Details then emerged of a Ksh133,000 debt in a separate loan account, which he dismissed any knowledge of.

He explained that he learned about the outstanding amount after a bank dismissed his loan application because he was now listed with the CRB.

The court also refused to award him Ksh215.8 million as damages and lost earnings that he accumulated after his loan application was turned down.

The ruling is expected to influence the activities of lenders who need guarantors to disburse credit.

For CRB listing clearance check our comprehensive guide here.

To share with us anything Whatsapp or text on 0713457481 or email exposeke.com@gmail.com

Be the first to comment

Leave a Reply

Your email address will not be published.