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Mogo Credit Embroiled In Scandal Over Fraud and Exploitative Rates Allegations

Joy Waweru | 2 weeks ago
Mogo Credit Embroiled In Scandal Over Fraud and Exploitative Rates Allegations In Bodaboda Business.
Mogo Credit Embroiled In Scandal Over Fraud and Exploitative Rates Allegations In Bodaboda Business.

Mogo credit is an international fintech offering finance options for cars ,motorbikes,Tuktuk loans for Kenyans.

Being income -generating assets the automobiles provide income for their owners and for Mogo through interest on loans.

Mogo has been accused of being an exploitative Shylock and conducting business in unethical standards.

 

A twitter user revealed that Mogo credit loans are repaid in dollars.As a result the more the Kenyan shilling weakens against the dollar the more interest a loan accrues.

 

Another user sounded a stern warning to youths against taking Mogo microfinance loans.

“You’ll never finish paying.They hit you with penalties and fines until you give up and surrender the bike after paying almost double the price.”

“I thought there was a maximum interest rate capped on loans ,it’s very unfair when one ends up paying the market price,”a tweep lamented while calling upon the Central Bank to regulate lenders.

 

Police yesterday had a rough time trying to suppress riot from protesting Boda Boda riders in Kitale town.Two police officers sustained injuries from the altercation.

The Boda Boda riders had United to attack a team of Mogo Microfinance institution who were trying to repossess a motorbike from a loan defaulter.

 

The Boda Boda riders accused the Mogo microfinance of high-handedness and being oblivious to the rough economic times.

Business in Kitale town came to a near stand still as police engaged in a public scuffle with Bodabodq riders.

Baraja Simiyu a member of staff from Mogo credit tried to recover one motorbike KMFX 046E from its owner.As soon as the Simiyu led team tried to grab the ignition keys,blows and kicks started to stream in.

It took the intervention of police based at Veterinary patrol base to retain calm to the angry motorbike riders.

Mogo credit was founded in 2012.

Most motorcycles financed by Mogo are brand new with payment period spanning over 18 months. Clients pay either in form of bank deposits or mobile payment solution MPESA.


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