By GALGALLO FAYOMore by this AuthorCommercial banks and saccos can now blacklist guarantors with credit reference bureaus (CRBs) if principal borrowers default on loans, the High Court said. In September 2008, Mr Micheu was served with notice that the school had defaulted on the loan with an outstanding balance of Sh952,262. Subsequently, Co-op Bank allowed him to dispose of the land to settle the debt but subject to the transaction being handled by the bank’s appointed lawyer. The bank further said the settled loan had also left unsettled interest that accrued as it processed the land for sale. Co-op Bank insisted that it had informed Mr Micheu of the outstanding loan but admitted that the initial notification erroneously left out the outstanding loan in the separate account.
Source: Daily Nation October 12, 2018 04:30 UTC