co-operative bank shenanighans

[Dunya]

Personally i think Leo is speaking from a theoretical point of view, what he was taught to say. The reality is very different

[Mkufuu]

@Leo Mwangih

Any one from co-op bank please come clarify this info…

And before they do this i need to educate people on how personal loan systems in Kenya work. Before i do that let me explain below terminologies

1. Check-off system - This is a loan servicing system signed between banks and employers on behalf of employees on negotiated terms. In such systems employers remit monthly loan payments for their employees to be bank and the same deducted from their pay.
   2.Settlement account- In a check off system the money remitted by employer hits this account. This is an account with specific formulas that has been automatically fed with the customers loan schedule( This is in a document called total cost of credit).

In Kenya most of the tier 1 and 2 banks operate check off systems for personal loans. Thus for one to be check off system you only have two accounts, a loan account and a settlement which work hand in hand. The settlement account feeds the loan account with principal loan payments. Interest payments are credited into banks suspense accounts. The info that you are giving us that your money goes to four accounts is misleading as one does not require to even have a salary account with the bank to be in a check off system.

Specific preset formulas are normally set on settlement accounts to tally with your loan schedule thus no extra money remains from check off remittance unless your employer sends payments which are more than deduction schedules sent to them by the bank after disbursements

3. Moratorium period - This in a grace period normally between 1 to 4 months before the first loan repayment after disbursement. If your employer was to start deducting from you before the period is over its your responsibility to claim the money from your banks as the money remains suspended in your settlement account.(Remember the settlement account is set in a way that it starts feeding your loan account only after the grace period).

As a customer in any organization, that’s including a bank it’s your responsibility and your entitlement to constantly check with them if your loan repayments are as agreed as some of these tier 1 banks have millions of customers that have loan accounts with them.

It’s also your right to demand explanations on where you see something wrong in your loan account. You can be compensated millions of shillings if you have a genuine complain on a commercial bank running irregular operations in your account. Please read consumer protection act 2013.

Much said it’s blatant irresponsible and unfair of you to generalize on a bank which advanced you large some of money to grow yourself (Remember they just don’t give everyone) unless you squandered the money thus into pains you to pay back.

In future if you fail to get satisfactory answers for your loan accounts please demand to talk to the management. It has always worked that way for me as i get to understand things from a neutral point of view.

Banking halls are always part of everyone one of us as our daily hassle is money, develop a positive attitude and you will meet positive attitude. If you go there with a negative attitude you will beget the same as these guys are normally under much pressure

Missed the part where I am supposed to be sued (you might want to edit your post)… I agree with you on the check-off loan system and how various accounts operate. If you are honest it’s not technically different from what I posted. But that’s besides the point! Many people, that have taken loans in this bank, do not know this system exists. It is possible that people who have cleared loans may have some “amount” left to claim, yet no one will disclose this to them.

@Leo Mwangih

Much said it’s blatant irresponsible and unfair of you to generalize on a bank which advanced you large some of money to grow yourself (Remember they just don’t give everyone) unless you squandered the money thus into pains you to pay back.

Christ on a bike!!! You really work in the bank, don’t you? which one? You sound like one loans manager who tried to share this kind of wisdom with me on how I am lucky to be awarded a loan and why I should be grateful etc etc. Just know if you happen to serve me poorly and spout this kind of gobshyte, you will have a sleepless night.

[Str8up]

Am still reading the comments

[Koolibah]

I gerrit. if a big If an employer remits cash during the moratorium period I should claim it because it doesn’t reflect on my loan account. could I tell them to credit my loan acc so as to reduce the repayment period?

[Mkufuu]

@Koolibah

I gerrit. if a big If an employer remits cash during the moratorium period I should claim it because it doesn’t reflect on my loan account. could I tell them to credit my loan acc so as to reduce the repayment period?

They should. Unless they come up with gibberish like co-op did explaining that the balance in the settlement account will protect me from late remittances from the employer.

[Leo_Mwangih]

@Koolibah

I gerrit. if a big If an employer remits cash during the moratorium period I should claim it because it doesn’t reflect on my loan account. could I tell them to credit my loan acc so as to reduce the repayment period?

Yes that is absolutely possible. In that case the loan balance would reduce as a lump sum as there are no interest payments (This is an off-Schedule payment)