Kenyans on twitter exposed dirty tricks that are used by companies that give out motorbikes on credit to the youth that leave them poorer, vulnerable and damaged.
According to a twitter lending companies collude with thieves to steal their motor bikes immediately they finish paying the high interest loans. One person made thread that went viral on how he struggled to pay almost 300k for a bike that costs about 100k only for the bike to be stolen from his parking on the night he completed payment.
Other tweeps went ahead to a narrate similar ordeals at the hands of crooked lenders with all pointing fingers at the companies as accomplices in the rampant theft. Angry Kenyans online condemned the lenders while asking low makers and regulators to come to their help.
Other ways riders get conned by the lenders:
- Hidden Fees: Lending companies may advertise low-interest rates, but then charge hidden fees such as processing fees, origination fees, or prepayment penalties. These fees may not be disclosed upfront, making it difficult for riders to compare different loan offers and understand the true cost of borrowing.
- Misleading Information: Lending companies may use misleading information in their advertising and marketing materials to attract riders. For example, they may use phrases like “no credit check” or “guaranteed approval” to suggest that anyone can get a loan, even if they have a poor credit score. However, in reality, there may be strict eligibility requirements that the customer must meet.
- High-Pressure Sales Tactics: Some lending companies may use high-pressure sales tactics to persuade riders to take out a loan. They may use scare tactics, like saying that the loan offer is only available for a limited time, or that the customer will miss out on a great opportunity if they don’t act quickly.
- Unaffordable Loans: Lending companies may offer loans that are unaffordable for the customer, with high-interest rates and short repayment terms. This can trap the customer in a cycle of debt, where they are unable to repay the loan and are forced to take out more loans to cover the repayments.