Even after repaying, the debtor is still not off the hook. He remains in CRBs book with a low credit rating for seven years, a situation that can keep banks from extending a loan to him for that period.
The blacklisted individuals are those borrowing through mobile and simple online platforms such as Tala, M-Shwari, KCB-M-Pesa and a host of other avenues.
Transunion Chief Executive Officer Billy Owino said most of these individuals are finding themselves blacklisted for lack of knowledge on the consequences of defaulting paying a loan, which is as little as the Sh. 500.
This is on top of a failure by the lending platforms to fully utilise information from the CRBs when profiling clients.
“Most of the borrowers do not know how they got blacklisted. We get like 200 calls daily from individuals in this category asking how they ended up in the blacklist,” said Mr Owino.
The Transunion boss said in the current case, you will find people borrowing from very many platforms at the same time, without caring about the risk they are putting themselves into.