Our services have been retained by one Ms. Maureen Doreen Kaari Karimi, on whose instructions we wish to address you as follows.
At all material times, our client has been your customer at Equity Bank Limited, OTC branch. Our client had a mortgage charged to the above mentioned property: a first legal charge dated 13th July 2010 for Kenya shillings Four Million, six Hundred and Ninety Thousand (4,690,000/-) and further charged dated 9th December 2013 of Kenya Shillings Two Million, Six Hundred and Sixty Thousand (2,660,000/-).
Our client also runs business, hardware, at OTC, in the name and style of Vergos General Suppliers. The said business was servicing the loan at a monthly installment of Kenya shillings Ninety Five Thousand (95,000/-) due to the ‘increase in interest rates at the banking industry’
Later in 2014, by invitation of the credit Manager, OTC Branch, our client was misled to merge both the loan and mortgage and pay them concurrently at a rate of Kenya Shillings Two hundred and Seventy Three Thousand (273,000/-).
On advise that it will compress her payment period for ten (10) years to three (3) years and that it will decrease the rate of the mortgage interest.
Relying on the information our client started paying the loan and mortgage at the new interest rate, and in order to complete the payments within a short period, this arrangement caused and forced her to withdraw a lot of capital from her business - which was her sole source of income and son after the business was unable to sustain repayments from profit and the liquidity drastically reduced leading to frustration, this made her fail into arrears in meeting the loan and her other financial obligations.
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