What happens if I don't pay?

The Patron has licensed the Credit Reference Bureau (CRB) to collect, store and collate credit information on individuals from different sources and provide information in the form of credit reports upon lender's request. To get listed by CRB means that your loan has been labeled as non-performing consistently for some time now. By non-performing, it means that you did not attempt to make any partial payment during the loan tenure. The effects of being negatively listed by CRB are felt almost immediately. Below are some of the negative consequences of being listed by CRB.

Denial of future loans

This is the most obvious consequence. The main objective of CRB is to blacklist defaulters and stop them from taking future loans until they settle their outstanding amounts. This is achieved through sharing your credit profile with credit institutions to make lending decisions.

Negative Impact on your Credit score

A credit score is a number lenders use to help them decide the possibility of getting paid on time if they give a person a loan. Your credit score depends on your credit history. The credit score has the potential to impact your loan application and the interest rates that you will be charged. An adverse credit score attracts typically higher interest rates since the risks of lending money to such an individual are high. Being black-listed by CRB will change your credit score for worst

Loss of employment opportunity

Do not be surprised if you land on the job of your dreams then your potential employer requests for a CRB clearance certificate. Employers may do a credit background check as a requirement for recruitment to ascertain the creditworthiness of their job applicants before considering them for employment. A credit background check helps employers eliminate any potential risk of employee fraud.

Contesting for a Public office job

Article 73(2)(a) of the Kenyan Constitution, as well as Section 20(3) of the Public Officer Ethics Act, Cap 183 of the Laws of Kenya which stresses leadership and integrity. Demands a certificate of reference from credit reference bureaus, amongst other clearances, has been ratified as part of integrity clearance for those applying for jobs in the public service. Your political ambitions will come to an abrupt end because, as part of requirements, short-listed candidates are required to present their certificate of reference from the CRB so that they are cleared to run for office.