The Competition Authority of Kenya (CAK) has announced a settlement with KCB following a complaint that the bank misled a client about credit card charges and billing cycles in an advertisement. KCB had promoted a 45-day interest-free period for its Platinum Credit Card but still billed the client interest.
According to the CAK, KCB failed to properly inform the complainant about repayment cycles and credit billing, resulting in confusion. Earlier this year, a CAK report disclosed that KCB was required to refund over Kes 20,000 to Anthony Nderitu, who had borrowed around KES 200,000 under the assumption that no interest would be charged as per the advertisement.
“Upon examining the credit card statement, the complainant found that the bank had charged a late payment interest of KES 12,724 and a debit interest of KES 8,857, totaling Kes 21,581,” stated the CAK report.
The CAK, in a gazette notice published on June 28th but dated December 14, 2023, noted that it had launched investigations into KCB’s actions under provisions of the Competition Act that prohibit false or misleading representations and unconscionable conduct by a supplier of products or services.
Several banks have been scrutinized by the CAK for unfair practices as customers lodge complaints about hidden charges and misleading advertisements. By withholding crucial information about products, customers have been unable to fully grasp the implications of the services they use. Other banks that have had to refund clients include NCBA, Stanbic, and DIB Bank.
