Interest Recalculation, Finance Cost Assurance and reconstruction of financial facilities is a complicated process. Everything turns on the interpretation and meaning of contractual documents and the applicable law governing these contracts. If and when a dispute between a Client and a bank goes to litigation, the basis of the Interest Recalculation becomes critical.
Despite their invitation to query, banks may for whatever internal reasons, fail to give refunds when challenged. Hence the need to seek legal redress. It is basic law that all contracts are made subject to the law and, if necessary, are deemed to be modified to the extent necessary to comply with the legislation. In other words, loans are bargains made in accordance with the law. Unless the law allows it, parties cannot contract out of legislation.
The following are good and enforceable lending laws;
- The new section 44 A of The Banking (Amendment) Act 2006 applies retroactively.
- The Central Bank of Kenya Act prescribed Legal Maximum Rates of interest for the periods:
• July 1991 to April 1997 and
• 1st January 2001 & 31st July 2005 (55 months)
Virtually ALL Bank Charges, Fees and Commissions charged to your account between 1st November 1989 to date are illegal on account of Section 44 of The Banking Act.
During the litigation (court) proceedings, IRAC will liaise closely with the Advocates and offer Expert Witnessing in court when required.
IRAC’s reports have stood the test of the law as they have been accepted as expert evidence by the commercial division of the High Court of Kenya. Cases have been won based on this evidence. IRAC has documented a list of real successful cases (linked to the digest of cases) it has handled.
Some parties also opt to settle out of court on the basis of IRAC’s findings. IRAC’s reports highlight the points/periods of overcharged. This makes it easy to negotiate as the problem areas are narrowed down to specific points.
IRAC does not issue Credit Verifier! Reports and then leave you alone to help yourself as best as you can. Rather, IRAC stands by you every step of the way to a refund.
Needless to say, the premises of The IRAC Process are based on a plain reading of the law by experienced Advocates of the High Court of Kenya and Commercial Lawyers. Much as The IRAC Process is geared towards amicable settlement, IRAC ensures that our Client’s case is legally watertight.
If our client is litigating, or is thinking about instituting legal proceedings against the bank/financial institution, IRAC’s consultants provide a technical review service of the legal Pleadings to ensure their technical accuracy. Whenever necessary, we will appear as an Expert Witness on your behalf in Court.