Mogo hit with class action suit in lending terms dispute

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A boda boda rider ferries a passenger past closed Mogo Boda Boda seller outlet in Kolen, Nakuru Town.

Photo credit: Boniface Mwangi | Nation

Three borrowers have brought a class action lawsuit against microlender Mogo Auto Ltd, claiming that its lending model and debt recovery practices are predatory, unfair and unconscionable commercial conduct, contrary to equitable principles and public policy.

The borrowers claim that the firm, which finances the acquisition of cars and motorcycles, imposes exorbitant compound interest rates that allegedly exceed prevailing market and statutory limits.

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