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Monday, October 19, 2020

CRB shares Important Law Loan Defaulters should know

    October 19, 2020   No comments

CRB
@MetropolCRB

If you don't pay your loans as agreed with the lenders, your name will be submitted to the CRB for blacklisting.

The CRB which is licensed and regulated by the Central Bank works under a certain set of laws meant to protect both the borrowers and the lenders.

In Kenya, there are three licensed Credit Reference Bureaus (CRB) that work with the lenders to store borrowers' information and submit the same  whenever needed.

Read ; Three Licensed CRBs in Kenya 

Lenders are allowed by law to submit your name for blacklisting to one or more CRBs but how long can a defaulter's name stay there?

After you're blacklisted, you can go ahead and clear the loan, then clear with the CRBs. This way, your name will be out of the blacklist. This can happen anytime you wish after you clear the loan.

Once your name is in the whitelist (out of blacklist) ,you can still approach lenders and take loans from them , but your credit history will show you defaulted some time back.

How long will the default Credit History Stay? Metropol CRB, one of the Reference Bureaus has explained this as per the law.

Your Credit History will be stored for a maximum of 5 years before it gets deleted. But ,within all this time you can still borrow from lenders.


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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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