Telecommunications service Company Safaricom will deploy the services of debt collectors in its new zero interest credit service product Faraja set to be rolled out.
Safaricom to deploy debt collectors to go after loan defaulters
This is the first time Safaricom will be deploying external debt collectors to go after loan defaulters
According to the terms and conditions attached to the new product, the company will be forced to involve external debt collectors who will be forced not only to engage defaulters with external collectors but also handover the defaulters’ details to the Credit Reference Bureau (CRB).
“At any time after an event of default has occurred which is continuing, we may, without prejudice to any other right or remedy granted to us under any law, take reasonable measures including engaging an independent debt-collection agency, to recover the amount in default (and/or) submit information concerning the event of default to Credit Reference Bureaus, subject to applicable laws,” read the terms and conditions by Faraja.
Faraja which is financed by Equity Bank will allow customers to buy goods from as low as Sh20 to a maximum of Sh100,000 and pay the same amount without any interest charges. Users will be only be charged transaction fees during product or service purchase.
The service will also be offered in limited shopping outlets with outlets such as Naivas Supermarket and Goodlife Pharmacies already signed up.
Faraja which is owned by tech company EDOMx Limited will be looking to compliment other similar products offered by the company such as Fuliza, M-Shwari and KCB Mpesa.
Fuliza which was the company’s latest product is an overdraft product launched in 2019 in partnership with NCBA Bank and KCB Bank which like the other products has seen a major default by users.
The launching of Faraja will increase the payments made through the Lipa na Mpesa platform which has become a major game changer in the cashless mode of payments.
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