By John Kariuki
Mwananchi Credit has downplayed a tiff by a lady who recently went viral purporting to have been harassed by the firm over misunderstanding on the repayment of a loan.
According to documents in our possession, Ann Karinge who was acting as guarantor to her brother Solomon Mwangi who is now deceased was ordered to pay Ksh 190,000 and secure her vehicle which acted as a collateral but declined.
According to our investigation, Karinge moved to small claims court in a bid to halt the recovery process citing the death of the borrower.
However, aggrieved by the orders, Mwananchi credit one of the reputable money lending firms moved to high court where the court ruled that the guarantor deposits some amount in an interest earning account on a condition for the release of her vehicle.
“It is true that if the vehicle is released to the respondent as ordered, then there is a real risk that the only guarantee of payment of the debt owed by the appellant may be lost”, reads the ruling by the High Court.
It adds; Accordingly, the application is determined as follows the respondent does deposit in an interest bearing account in the names of the advocates for the parties in a sum of Sh126,222.
It is at the same time believed that the high court agreed with the appellant that if the borrower had opted not to insure his loan against the risk of death due to the existence of collateral then the appellant need not to suffer.
October 2019, Solomon Mwangi took a loan of Sh421,459 from the company.
He later took another loan of Sh200,000 in May last year (2021) and defaulted, forcing Mwananchi Credit to seize the vehicle.
His sister Anne Karinge’s vehicle was used as collateral for the loan.
Unfortunately, Mr Mwangi passed on and the shylock was at pains on how to recover their money.