The Competition Authority of Kenya (CAK) has gazetted a settlement it made with KCB last year following a complaint that the lender had mislead a client on credit card charges and billing cycles on an advertisement.
KCB had advertised a 45-day interest free period for holders of the bank’s Platinum Credit Card, but billed a client interest anyway. Moreover, CAK the bank did not inform the complainant on the repayment cycles and the credit billing thus creating confusion. In a CAK report released earlier this year, KCB was forced to refund more than KSh 20,000 to Anthony Nderitu who had borrowed about KSh 200,000 believing no interest would be charged as advertised.
“Upon interrogating the statement on the credit card, the complainant discovered the bank had charged a late payment interest of Ksh 12,724 and a debit interest of KSh 8,857, totalling KSh 21,581,” CAK said in the report.
In a gazette notice published on 28th June but dated 14th December 2023, the CAK said it had initiated investigations into KCB’s conduct based on parts of the Competition Act that ban false or misleading representations by a supplier of a product or service, as well as parts that prohibit unconscionable conduct.
Various banks have been on the CAK’s watchlist for unfair practices as customers file complaints over hidden charges and misleading advertisements. By withholding material information on products, customers have been unable to fully understand the implications of services they partake in. Other banks that have had to refund money to clients include NCBA, Stanbic, and DIB Bank.