Money Markets
Judges strike a blow for cheaper credit in interest rates suits
Commercial banks flouting the in duplum rule limiting excessive charging of penalties on bad debts are smarting from recent court rulings that have ordered refunds to borrowers, halting sale of properties charged on the loans.. Photo/FILE
Posted Monday, February 8 2010 at 00:00
In one such case the contract did not stipulate some of the bank charges, such as commissions, ledger fees and what the bank called miscellaneous debt forcing the plaintiff to overpay more than Sh220,000.
With a slowdown of the economy due to spiral effects of the global recession, post election violence in 2008 and prolonged drought, many Kenyans grappling with high inflation and job uncertainties have been forced to review their spending with long term financial obligations taking a back seat.
Companies have not fared any better with cash flows constrained by flat or marginally higher turnover and increased competition forcing them to reschedule some of their debts.
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