The NCBA Bank is on the spot after one of its customers accused the lender of auctioning their vehicle despite re-paying their loan.
Documents in our possession indicate that NCBA through its asset financing arm financed Urban Digital Services to purchase an Isuzu FRR in September 2020, with a repayment period of five years.
The financing worth Ksh5.1 million was to attract an interest of 13 percent per annum, with the first repayment set for October 5, 2020. Urban Digital services was to pay Ksh111,620 per month, but fell behind at the beginning of 2020, prompting the lender to repossess the vehicle and put it up for auction.
The vehicle, registration number KCY 274D, was advertised for auction alongside other 72 vehicles, after the amount accumulated to Ksh486,251. The amount was for two different loan facilities, for the same company.
The deadline for bids was put on February 10, 2021.
The company was willing to rescue the lorry from the auction and inquired about the terms of rescuing the vehicle.
On February 10, Urban Digital owner Fredrick Okello visited the bank and was asked to pay Ksh700,000 for the vehicle to be released.
However, after paying the Ksh700,000 he was asked to pay a further 207,000 in order for him to get a release letter on the same day.
The bank however reneged on the agreement and immediately sold the vehicle to someone else and since then no one at the bank has picked his calls.