Under the terms and conditions attached to the new product, the company will be obliged to involve external debt collectors who will be obliged not only to engage defaulters with external debt collectors, but also to pass defaulter details to Credit Reference Bureau (CRB).
“At any time after the occurrence of a continuing Event of Default, we may, without prejudice to any other right or remedy granted to us under any law, take reasonable steps, including engaging a collection agency independent debt collector, to collect the amount in default (and/or) submit information regarding the event of default to the credit reference bureaus, subject to applicable laws”, read the terms and conditions by Faraja.
Faraja, which is funded by Equity Bank, will allow customers to buy goods from 20 shillings up to a maximum of 100,000 shillings and pay the same amount without interest charges. Users will only be charged transaction fees when purchasing the product or service.
Faraja, which is owned by technology company Edmox Limited, will seek to complement other similar products offered by the company, such as Fuliza, M-Shwari and KCB Mpesa.
Fuliza, which was the company’s latest product, is an overdraft product launched in 2019 in partnership with NCBA Bank and KCB Bank which, like the other products, experienced major user failure.
The launch of Faraja will increase payments made through the Lipa na Mpesa platform which has become a major game changer in the cashless mode of payment.
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