In the past couple of days, several aggrieved consumers have reached out to this writer , most of them who had been eager to own a car or a motorbike for business purposes; and even some in need to access emergence funds to meet pressing needs like basic needs, medical bills or school fees amidst the tough economic times. Majority of them have ended up suffering hugely as they have ended up in jaws of a hungry crocodile.
Mogo Microfinance is said to be among the many unscrupulous microfinances in Kenya who have gone out of their way to ensure that apart from giving loans, they also reap where they didn’t sow. I have spoken to a number of affected customers.
Mogo, has appears to have resolved to deliberately mislead consumers by running its adverts with promises of extremely low interest rates as low as 1% per month which immediately jumps up to 8% monthly after application, a clear demonstration of being thrown under the bus. Just think about borrowing KES 100, 000 to meet an emergency only to end up repaying KES 500, 000 due to unilateral change of interest rates?
Away form that, Mogo has decided to act “Very Dollar” such that Mogo runs all adverts in Kenya shillings, their customers have loans disbursed to them in Kenya Shillings after which they exert their high bargaining power against the now weak customer; obviously your log book or whatever security is being held by them; but require that you repay you loan in dollars!
Now, a customer would have to meet the exchange rates shocks in the current ever volatile market and Mogo has always seen it fit to direct the customers on how to acquire the dollars! Double business or theft? Could this be another contributing reason to the ever weakening Kenya shilling due to this artificial unnecessary demands created by Mogo and likes?
Additionally, the document and related investigations seen by Kenya Insights pertaining to consumer violations currently indicate that woe into you if you try to have another agency, especially banks buy off your loan from Mogo! Once you present such a request, Mogo will ensure to exaggerate your loan balances to discourage you from moving so that they can continue milking you! How justified? I know of customer who has been following up on such a buy off close to six months. Where is the fairness in this?
I understand the Competition Authority of Kenya has been doing much to protect Consumers and is obviously looking into some of the issues, but what about the customers who do not know to whom to run to? And Why can’t Mogo Microfinance be stopped by the Competition Authority? The Act empowers the CAK to impose up to 10% of what Mogo made as income in the last FY, which in my view should immediately be imposed to stop the violations.
I wish to discourage consumer from lying low while being milked. Know your rights and know that you are protected by the Constitution and the Competition Act against all issues on False or Misleading conduct as well as Unconscionable conducts and if you are affected in any way or have any issues against the above, feel free to reach out to the Competition Authority through the email [email@example.com] , get their App on Play store, go to Ecitizen and then this “milker” to be busted. The services of the agency are totally free