Sharp Daily
No Result
View All Result
Friday, June 27, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Mogo Auto fined KES 10.85 million by CAK for misleading loans

Teresiah Ngio by Teresiah Ngio
October 4, 2024
in News
Reading Time: 2 mins read

The Competition Authority of Kenya (CAK) recently fined Mogo Auto Limited KES 10.85 million for misleading representation and engaging in unconscionable conduct towards its customers. This ruling comes after the Authority received several complaints from customers about improper loan practices, including overcharging and unauthorized adjustments to loan terms.

The core of the issue lay in Mogo’s approach to loan issuance and repayment. Despite offering loans in Kenyan Shillings (KES), Mogo calculated repayments in U.S. dollars (USD), which exposed customers to the volatility of exchange rates. One complainant, who borrowed KES 2,100,000, saw their loan repayment recalculated to USD 17,828.16, which fluctuated due to changes in foreign exchange rates.

This led to higher and unpredictable repayments. “I was shocked to see the final loan amount had changed significantly from what I had agreed upon. It made budgeting nearly impossible,” one complainant noted.

Additionally, Mogo Auto was accused of making unilateral changes to interest rates. In some cases, customers were initially offered loans at a flat interest rate, only to have the terms adjusted to a reducing balance rate without their consent.

RELATEDPOSTS

CAK greenlights Ramco Inc.’s sole ownership of Ramco Plexus

October 31, 2024

B Commodities secures approval for Lipton Teas buyout, retains 10,000 jobs

August 12, 2024

This violated the contractual agreements and placed additional financial strain on the borrowers. “I trusted the terms we agreed upon, but when they changed the interest rate without my approval, it felt like I was tricked,” another customer lamented.

In response to these complaints, CAK launched an investigation and found Mogo to be in violation of sections 55(b)(i) and 56 of the Competition Act, which prohibit false or misleading representations and unconscionable conduct in loan administration. CAK’s ruling mandated that Mogo refund a total of KES 344,939 to three customers to cover overcharges stemming from currency conversions and interest rate alterations.

“Mogo Auto Limited’s actions contravened the principles of fairness and transparency that should govern loan transactions,” a CAK representative stated. The company has also been ordered to resolve all pending complaints and avoid similar misconduct in the future. To further enhance compliance, Mogo and its employees must undergo consumer protection training by August 2025

Previous Post

The power of self-awareness in Kenya’s fight against groupthink

Next Post

National Treasury commences transition to accrual accounting in public sector

Teresiah Ngio

Teresiah Ngio

Related Posts

Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025

LATEST STORIES

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025

The importance of internships and mentorship for young graduates: Insights from Cytonn Young Leaders Programme

June 26, 2025

Kenya must tame stock market volatility to unlock corporate growth

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024