(+) LOAN BAL­ANCE RE­VEALS PAY­MENT DIS­CREP­AN­CIES

The Star (Kenya) - - News Business -

Tan­raaj Singh Dhanjal, the di­rec­tor of Dhanjal Broth­ers Ltd, had made pay­ments to­talling Sh293,832,299, but when the bank ten­dered its ac­counts, it re­flected the debt had in­creased to Sh727, 421, 000 in­stead of re­duc­ing. “The bank, with­out rea­son­able cause and with dis­re­gard to the Bank­ing Act as amended in 2016, is charg­ing in­ter­est at 28 per cent , which is all-time high con­trary to the law. It has un­law­fully dented the plain­tiff’s ac­counts and cred­ited it­self on monthly ba­sis the high in­ter­est, whereas the cost of the over­draft fa­cil­ity was set­tled ac­cord­ing to the terms of the let­ter of of­fer,” the doc­u­ment reads. The busi­ness­man says the bal­ance to be paid is Sh171,167,701, but the amount con­tin­ues to in­crease since the bank is levy­ing unau­tho­rised charges as penal­ties, in­creas­ing the costs of the loan.

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