1What is interest recalculation and why is it important?
Once your loan is disbursed to you by the bank, you make repayments using the repayment plan given i.e. principal + Interest (and default charges if applicable). At times banks make mistakes in their calculations or deliberately don’t factor in interest rate changes or factor in interest changes before informing you of the change in interest rate applicable. This ultimately results in you being charged default rates or would hamper your chances of redeeming back property placed as security. We at IRAC have systems which detect these variations and recalculate your repayment schedule in the correct way and advice you on what amount is correctly owed to the bank.
2What options do I have after recalculation?
Once the correct figures have been established, you have the opportunity to negotiate with the bank from a point of knowledge, or where this fails and an overcharge has been established after our recalculation exercise, you can take legal action through the courts to demand and reclaim what is owed to you by the bank.
3Is my fate sealed once my property is advertised for auction?
No. You can come to IRAC for a thorough scrutiny of your statement of account with an aim to see whether what the bank is demanding from you as the amount owed to them is actually the case. It would be a shame to lose your property over a mistake in calculation by the bank.
4How much does IRAC charge for the exercise?
We charge a consultation fee of Kshs. 1000.00 after which we assess your documents and determine the cost. Over all the cost depends on the following matrix: The age of the facility – the time between disbursements to the end of the bank statement, How busy your account statement (s) are, Nature of your instructions.
5How long does it take to do the exercise?
On average two to three weeks (may extend depending on the nature of your facility(s)).
6What about my facility which I stopped servicing some time ago as I have been going through financial hardships?
The law prohibits the lender from recovering from the borrower interest exceeding the amount of principal at the time the account became non- performing. IRAC can do an In Duplum recalculation on your facility and establish when the facility reached its In Duplum point and how much is now owed to the bank.
7Is IRAC in control of the interest rates charged on facilities by the banks?
No. our interest recalculation is based purely on interest rates provided by the Central Bank of Kenya, Your contractual agreement with the bank and specific legislation linked to the banking industry.
8Can IRAC help me get suitable legal representation?
Yes. IRAC has worked over the time with reputable advocates to help clients solve their debt issues.
Bank account statements, from the first to the most recent one. All Banking Facility Letters or Hire Purchase agreements relating to your bank account or associated bank accounts.