How to know if you are blacklisted by CRB and how to get clearance after you repay your loan

Alright, let’s talk loans today, and what happens when you do not pay your loan on time.

There are a million and two reasons why people take loans – I included- so we shall skip that bit. The important question is: How many of us remember to pay the loan back?

As it happens, if you take a loan from an institution in Kenya (Read: banks, micro credit institutions, etc), you are given a certain period of time to clear the loan. Today, you can receive loans direct to your mobile phone instantly if you qualify for the same.

READ: Trusted Online loan applications that gives you money instantly into your mobile phone

Because of competitiveness in his field, it has become very easy for people to access loans form these institutions without the need to provide security. Many Kenyans have embraced this well….but when it comes to repayment, things change.

This is where the CRB (Credit reference Bureau) comes in. CRB is mandated by the central bank of Kenya to keep track of performing and non-performing loans. To read more on CRB, click link below.

READ: WHAT is CRB and why should every Kenyan know about it?

This article concentrates on what happens AFTER you default on your loan, how you can know your status and what you can do about it.

What happens after you default on your loan?

As stated earlier, when you borrow money form an institution, you are given a number of days to repay the loan. After those days expire, some institutions are polite enough to remind you to pay them the principal amount you borrowed plus the interest you owe them.

***Some institutions increase their interests after one defaults in payment of their loans. You can check this with your loan provider***

When you do not honor your obligation for a certain period (usually 90 days), it is customary for these institutions to forward your loan to a third party for recovery. These third parties are specialists in debt recovery and management.

After they are also no able to recover the money from you, they then forward your case to the CRB and recommend that you get blacklisted.

What is being blacklisted by CRB and what does it mean?

Before we talk about this, kindly note that each person in Kenya has their details registered with the credit reference bureau. If you read the article on CRB, you will understand how it works. The difference comes in whether one is blacklisted or in the clear. If you have a history of borrowing and paying on time, you will be in the clear and your credit score will be good. If you default, then you get blacklisted.

When you get blacklisted, you cannot be able to access any loan from many institutions in the country. Whenever you request for a loan, the counter-check with the CRB records and if they find that you have been blacklisted because you defaulted on payment of a loan before, then chances of you receiving another loan are literally 0.

How do I know whether I’m blacklisted and how do I know who blacklisted me?

The central Bank of Kenya has given 3 companies the mandate to control and disburse this information.

COMPANY:CREDIT INFO TRANSUNION AFRICAMETROPOL CORPORATION
PROCESS:Go online to Request a credit report 1. Send SMS with your FULL NAME to 21272. SMS charge is 20
2. Enter ID No.
3. Enter service
COST: - There is a 1 free credit report every year.
- Subsequent reports are charged Kshs. 300
Can also use mobile app
1. On your phone, dial *443#
2. Enter ID No.
3. Pay Kshs. 50 to 220388 paybill no. Your ID No is your account number.
4. Receive a link to download your status
COST: Initial Kshs.50
- Kshs. 250 for Credit report
- Kshs. 150 for credit score
- Kshs. 50 to know who has listed you
CLEARANCE:Fill in the Clearance form 1. Pay Kshs. 2,200 to Paybill No. 212121. Your Id will be used as account number
2. Send the details of payment to cert@transunion.co.ke
Must be registered.
Sign in and download the form
DISPUTE:Use Dispute formDispute form here Email them- Cert@transunion.co.keEmail them - creditbureau@metropol.co.ke
CONTACTS & OFFICES:Physical Address: Spark Suites, Suite 12, 2nd Floor, Parklands Road, Nairobi
Postal Address: P.O. Box 38941-00623, Parklands
Email: info@creditinfo.co.ke

Physical Address: 2nd floor, Prosperity House, Westlands Road, Off Museum Hill, Westlands, Nairobi
Postal Address: P.O. Box 46406, 00100 Nairobi
Telephone: +254 730 651 000
Fax: +254 (0) 20 3751344
Email: info@transunion.co.ke
Website: www.transunionafrica.com
Physical Address: 1st Floor, Shelter Afrique Centre, Upper Hill, Nairobi
Customer Service Centre: 9th Floor, Barclays Plaza, Loita St. Nairobi
Postal Address: P.O. Box 35331, 00200 Nairobi
Telephone: +254 (0) 20 2689881, 727 413 733, 732 774 666, 709 834000
Email: creditbureau@metropol.co.ke
Website: www.metropol.co.ke

How long does CRB keep my default records?

5 years

Help! I have repaid the loan but I still find myself blacklisted

In this case, it would be important to ask the party that forwarded you to CRB for proof of clearance. Then present this to the CRB and the records will be updated accordingly.

What types of loans are blacklisted?

A fire is a fire, right? All kinds of loans are blacklisted in the event you default for payment as agreed. If you owe Safaricom Kshs.100 and you default, you will be blacklisted, and so forth.

Why should I be concerned about being blacklisted?

Apart from shutting you out from receiving loans, there is a possibility that a blacklist with CRB can earn you that dream job. Most companies today conduct a full background check before they hire a person.

READ: Hiring new employees into key positions? This is the kind of background check you need to conduct.

When an employer notices that you have defaulted on 17 loans, you look less attractive to them.

Remember, Kukopa arusi, kulipa matanga!

Money, money, why art thou forsaken me? – Anonymous

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