The Central Bank of Kenya (CBK) has put on notice commercial banks and credit reference bureaus (CRB) over inaccurate data on borrowers.
CBK chairman Mohammed Nyaoga said complaints about inaccurate listings by customers if not well handled by the banks and the credit reference bureaus pose significant reputational risks to the firms.
“Customer complaints arising from credit information sharing need to be amicably addressed,” said Mr. Nyaoga at a meeting hosted by Creditinfo Credit Bureau for bank executives last week.
“A number of complaints have arisen from customers on being erroneously negatively listed by CRBs or inaccurate information being submitted by their banks.”
Mr. Nyaoga noted that alternative dispute resolution is critical where the complaints cannot be resolved amicably with customers.
“Litigation on these complaints can be long drawn-out and damaging to the brands of both banks and credit reference bureaus,” he said.
Kamau Kunyiha, Creditinfo chief executive officer, however, exonerated bureaus from any wrong doing saying they rely on information provided by banks.
Banks found to be abusing the credit information system risk fines of up to Sh1 million.
Some banks and credit reference bureaus have in the past been on the spotlight for misusing the system by sharing erroneous information or failing to provide up-to-date information even where defaulters pay up.
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Credit: Business Daily
