Fuliza has been a renowned short-term facility all over Kenya with almost every M-Pesa user having access to this facility.
However, most people are in doubt whether or not fuliza can list you to CRB and what consequences you can face in case of a default on the Fuliza loan.
I will explain to you in simple terms on what you expect whenever you default on your Fuliza. Whether it is appropriate and the repercussions you can face to other lenders following fuliza default.
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What is Fuliza
What many might ignore is what Fuliza is actually. Is it owned by Safaricom? Is it a normal loan similar to other bank loans? What type of a loan is fuliza. Well, I will articulate all this points at a shot and you will have a clear image of fuliza at a glance.
Fuliza is a short-term overdraft service that is provided to Safaricom’s M-Pesa customers. It is provided to a specific maximum limit customized to each customer.
This overdraft service is usually not a product of Safaricom only. It is a service provided by an agreement between Safaricom, KCB Bank and NCBA Bank as well.
Jointly, they are able to provide the fuliza services being that Safaricom is not a financial institution hence limiting it from offering the lending capacity.
What Happens if you Default Fuliza Overdraft?
Upon defaulting Fuliza, you will face several consequences which might later affect your fuliza limit or also terminate the product services.
Fuliza Default Period
Fuliza’s default period is usually 30 days from the day in which the facility was first granted without including the top-ups upon that first facility.
How a Fuliza Default Happens
Here are some of the consequences whenever you default a Fuliza loan.
A default event takes place when:
- In the event that a facility is overdue and underpaid by thirty (30) days or longer,
- Where your overdraft limit has been surpassed; or
- If any claims, assertions, or information provided by you turn out to be false;
- If you violate any terms, conditions, covenants, or provisions of any other agreement we have with you about the Facility, or if you fail to comply with such terms, conditions, covenants, or provisions;
- If we learn that you have admitted to being unable to pay your debts when they become due or if there is a reasonable suspicion that you cannot pay your debts;
- If you are found guilty of a crime linked to using the services or any other services that are related under any applicable legislation;
- If a judgment or decree issued against you in any legal procedure is not satisfied within seven (7) days of the demand, then
- If any of your deposits with us or assets you retain are the subject of a garnishee, attachment, or lien.
Consequences of Defaulting Fuliza
- If we learn that you have admitted to being unable to pay your debts when they become due or if there is a reasonable suspicion that you cannot pay your debts;
- If you are found guilty of a crime linked to using the services or any other services that are related under any applicable legislation;
- If a judgment or decree issued against you in any legal procedure is not satisfied within seven (7) days of the demand, then
- If any of your deposits with us or assets you retain are the subject of a garnishee, attachment, or lien.
- or prohibit you from withdrawing any monies from your accounts, in whole or in part, for as long as the balance due on your loan is unpaid and to the extent permitted by law, without giving you prior notice and/or subjecting KCB or NCBA to any liability in connection therewith.
- Have a right of lien and setoff over any money that you have on deposit with KCB or NCBA in any of your accounts. KCB or NCBA may set off any sum owed from any other account, whether current, loan, or loan, or any other type of account, without giving prior notice. Savings and mobile savings accounts shall be subject to a right of lien and setoff.
- Provide Credit Reference with information regarding the Event of Default under the Banking Act or other regulatory bodies.
- Take reasonable steps to recover the defaulted amount, such as hiring a private debt collection firm.
So Can Fuliza List You to CRB?
Yes, fuliza can list you to CRB being that it is guided under the banking regulations covered by KCB and NCBA.
On defaulting the listing is done to any of the listing bureas in Kenya showing that you have delayed in making payment leading to the default state of the Fuliza facility.
