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Lending to Equity Bank Employees
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Investor1
#1 Posted : Thursday, June 20, 2013 8:49:06 AM
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Joined: 1/20/2009
Posts: 13
I wonder what has come of Equity Bank employees who have been borrowing Money in most of the micro finances and Banks and defaulting on the same.

There seems to be a collusion with the clearing department who normally return cheques on technical reasons when the said employees have no money in the account or are avoiding to pay the loan.

So credit practitioners, be worry of lending money to the Bank employees unless the facility is fully secured, otherwise your cheques will most often than not be returned on technical grounds!
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VituVingiSana
#2 Posted : Thursday, June 20, 2013 10:34:00 AM
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Joined: 1/3/2007
Posts: 18,126
Location: Nairobi
Investor1 wrote:
I wonder what has come of Equity Bank employees who have been borrowing Money in most of the micro finances and Banks and defaulting on the same.

There seems to be a collusion with the clearing department who normally return cheques on technical reasons when the said employees have no money in the account or are avoiding to pay the loan.

So credit practitioners, be worry of lending money to the Bank employees unless the facility is fully secured, otherwise your cheques will most often than not be returned on technical grounds!
Ouch! Doesn't that attract charges as well?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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maka
#3 Posted : Thursday, June 20, 2013 10:54:32 AM
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Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
Investor1 wrote:
I wonder what has come of Equity Bank employees who have been borrowing Money in most of the micro finances and Banks and defaulting on the same.

There seems to be a collusion with the clearing department who normally return cheques on technical reasons when the said employees have no money in the account or are avoiding to pay the loan.

So credit practitioners, be worry of lending money to the Bank employees unless the facility is fully secured, otherwise your cheques will most often than not be returned on technical grounds!



There is a legal way to go around this...unless you tell me Equity will also pay the judges...eazy peezy
possunt quia posse videntur
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King G
#4 Posted : Thursday, June 20, 2013 1:34:54 PM
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what technical reasons do they give for returning the cheque. reasons for returning the cheque unpaid are guided and coded by CBK and are uniform in the clearing house.
Thieves
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MaichBlack
#5 Posted : Thursday, June 20, 2013 2:20:17 PM
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Joined: 7/22/2009
Posts: 7,460
Investor1 wrote:
I wonder what has come of Equity Bank employees who have been borrowing Money in most of the micro finances and Banks and defaulting on the same.

d'oh! d'oh! d'oh! d'oh! d'oh!

How many Equity Bank employees do you know who have done this????

I just love Kenyans. Maybe you know of two people who happen to work for Equity Bank who have done this and all over sudden we have a thread "Lending to Equity Bank Employees..."!

You must have concrete figures before you allege there is a pattern to something. Or you can as well divorce your wife if she is from Zimmerman because "Zimmerman wives organize for the murder of their husbands!".
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Mukiri
#6 Posted : Thursday, June 20, 2013 2:35:29 PM
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Joined: 7/11/2012
Posts: 5,222
MaichBlack wrote:
Investor1 wrote:
I wonder what has come of Equity Bank employees who have been borrowing Money in most of the micro finances and Banks and defaulting on the same.

d'oh! d'oh! d'oh! d'oh! d'oh!

How many Equity Bank employees do you know who have done this????

I just love Kenyans. Maybe you know of two people who happen to work for Equity Bank who have done this and all over sudden we have a thread "Lending to Equity Bank Employees..."!

You must have concrete figures before you allege there is a pattern to something. Or you can as well divorce your wife if she is from Zimmerman because "Zimmerman wives organize for the murder of their husbands!".

Laughing out loudly Laughing out loudly Laughing out loudly Yenyewe that statement was too far-fetched.. Clearing house has a handful of guys whilst the bank employs thousands, do they discus the modalities during end-of-year party?d'oh!

Proverbs 19:21
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Caramba
#7 Posted : Thursday, June 20, 2013 3:42:57 PM
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Joined: 10/27/2010
Posts: 266
Location: Nairobi
Investor1 wrote:
I wonder what has come of Equity Bank employees who have been borrowing Money in most of the micro finances and Banks and defaulting on the same.

There seems to be a collusion with the clearing department who normally return cheques on technical reasons when the said employees have no money in the account or are avoiding to pay the loan.

So credit practitioners, be worry of lending money to the Bank employees unless the facility is fully secured, otherwise your cheques will most often than not be returned on technical grounds!




Most banks are very strict on the issue of unpaid staff cheques. Bounced cheque=Instant dismissal.

Some, however, allow their staff to get away with a slap on the wrist. Kcb comes to mind.
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Investor1
#8 Posted : Thursday, June 20, 2013 4:59:21 PM
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Joined: 1/20/2009
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The fact that it's illegal to bounce a cheque on account of insufficient funds and closed account, the said staff member use technical reasons like signature differs.

So far I know of about 113 employees which I think it's a sizable number.
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VituVingiSana
#9 Posted : Thursday, June 20, 2013 11:51:59 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,126
Location: Nairobi
MaichBlack wrote:
Investor1 wrote:
I wonder what has come of Equity Bank employees who have been borrowing Money in most of the micro finances and Banks and defaulting on the same.

d'oh! d'oh! d'oh! d'oh! d'oh!

How many Equity Bank employees do you know who have done this????

I just love Kenyans. Maybe you know of two people who happen to work for Equity Bank who have done this and all over sudden we have a thread "Lending to Equity Bank Employees..."!

You must have concrete figures before you allege there is a pattern to something. Or you can as well divorce your wife if she is from Zimmerman because "Zimmerman wives organize for the murder of their husbands!".
Women from Nyeri bashing their hubbies/boyfriends & random men. Starting with one ex-First Lady who slapped a cameraman after she stormed into a mediahouse's offices! d'oh! d'oh! d'oh!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mukiha
#10 Posted : Friday, June 21, 2013 7:52:49 AM
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Joined: 6/27/2008
Posts: 4,114
Investor1 wrote:
The fact that it's illegal to bounce a cheque on account of insufficient funds and closed account, the said staff member use technical reasons like signature differs.

So far I know of about 113 employees which I think it's a sizable number.


Not in Kenya it isn't!

Read the banking act again.

The last time we tried to make it so, the MPs said they are being "targeted" by the banks... as it turns out, MPs are the most notorious with bouncing cheques.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Investor1
#11 Posted : Friday, June 21, 2013 7:57:13 AM
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The defaulting employees are in Kenya!
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mukiha
#12 Posted : Friday, June 21, 2013 8:13:41 AM
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Joined: 6/27/2008
Posts: 4,114
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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maka
#13 Posted : Friday, June 21, 2013 9:43:00 AM
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Joined: 4/22/2010
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Location: Nairobi
mukiha wrote:
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.

Firstly it is illegal to issue a bouncung cheque and it carries a penalty of 1 year imprisonment. However this is only for cheques dishonoured on the basis of insuffuciency of funds. The remedy is a cause of action in contract...
possunt quia posse videntur
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mkeiyd
#14 Posted : Friday, June 21, 2013 10:59:38 AM
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Joined: 3/26/2012
Posts: 1,182
Investor1 wrote:
The fact that it's illegal to bounce a cheque on account of insufficient funds and closed account, the said staff member use technical reasons like signature differs.

So far I know of about 113 employees which I think it's a sizable number.


@Investor, How many Ekwety employees do you know again?

Moving on, who are you? NSA?
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mukiha
#15 Posted : Friday, June 21, 2013 11:50:37 AM
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Joined: 6/27/2008
Posts: 4,114
maka wrote:
mukiha wrote:
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.

Firstly it is illegal to issue a bouncung cheque and it carries a penalty of 1 year imprisonment. However this is only for cheques dishonoured on the basis of insuffuciency of funds. The remedy is a cause of action in contract...


Which law is this? Give specific reference - chapter, Act and section
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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mwekez@ji
#16 Posted : Friday, June 21, 2013 12:04:04 PM
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Joined: 5/31/2011
Posts: 5,121
CRIMINALISATION OF BOUNCING OF CHEQUES.

To deter issuance of cheques without funds in the respective accounts and thereby enhance confidence in cheques as a payment and settlement instrument, the Penal Code was amended through the Finance Act, 2004 to CRIMINALISE THE BOUNCING OF CHEQUES. Accordingly Section 316A (1) of the Penal Code states that, ‘’any person who draws or issues a cheque on an account is guilty of a misdemeanour if the person:-

(a) Knows that the account has insufficient funds;
(b) Knows that the account has been closed or
(c) Has previously instructed the bank or other institution at which the account is
held not to honour the cheque.

The purpose of this NOTICE is to remind the public that it is a criminal offence to issue a cheque whilst knowing that there are no funds in your account to meet the value of the cheque. In this regard, drawers of cheques should ensure that there are sufficient funds in their accounts before issuing cheques for payment. Payees (beneficiaries) of cheques that bounce are advised to report the offence to the Banking Fraud Investigations Department (BFID) at the under listed address or the nearest Police Station/Criminal Investigations Department (C.I.D.) office for further action.BFID has been instructed to promptly prosecute all offenders.

Banking Fraud Investigations Department
Marshalls House, Harambee Avenue
P. O. Box 60000-00200
NAIROBI
Tel: 020 2860000
CENTRAL BANK OF KENYA
JANUARY 2008

http://www.ubakenya.org/new/fil...ncing%20of%20cheques.pdf
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maka
#17 Posted : Friday, June 21, 2013 12:20:38 PM
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Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
mukiha wrote:
maka wrote:
mukiha wrote:
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.

Firstly it is illegal to issue a bouncung cheque and it carries a penalty of 1 year imprisonment. However this is only for cheques dishonoured on the basis of insuffuciency of funds. The remedy is a cause of action in contract...


Which law is this? Give specific reference - chapter, Act and section

Read above post #16 thanx @Mwekezaji
possunt quia posse videntur
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mukiha
#18 Posted : Friday, June 21, 2013 12:21:57 PM
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Joined: 6/27/2008
Posts: 4,114
mwekez@ji wrote:
CRIMINALISATION THE BOUNCING OF CHEQUES.

To deter issuance of cheques without funds in the respective accounts and thereby enhance confidence in cheques as a payment and settlement instrument, the Penal Code was amended through the Finance Act, 2004 to CRIMINALISE THE BOUNCING OF CHEQUES. Accordingly Section 316A (1) of the Penal Code states that, ‘’any person who draws or issues a cheque on an account is guilty of a misdemeanour if the person:-

(a) Knows that the account has insufficient funds;
(b) Knows that the account has been closed or
(c) Has previously instructed the bank or other institution at which the account is
held not to honour the cheque.

The purpose of this NOTICE is to remind the public that it is a criminal offence to issue a cheque whilst knowing that there are no funds in your account to meet the value of the cheque. In this regard, drawers of cheques should ensure that there are sufficient funds in their accounts before issuing cheques for payment. Payees (beneficiaries) of cheques that bounce are advised to report the offence to the Banking Fraud Investigations Department (BFID) at the under listed address or the nearest Police Station/Criminal Investigations Department (C.I.D.) office for further action.BFID has been instructed to promptly prosecute all offenders.

Banking Fraud Investigations Department
Marshalls House, Harambee Avenue
P. O. Box 60000-00200
NAIROBI
Tel: 020 2860000
CENTRAL BANK OF KENYA
JANUARY 2008

http://www.ubakenya.org/new/fil...ncing%20of%20cheques.pdf


Asante sana. I was behind news on that one. Now I have seen the full code here http://www.kenyalaw.org/...Acts/PenalCodeCap63.pdf

The offence is a misdemeanour punishable by "a fine not exceeding fifty thousand shillings, or to imprisonment for term not exceeding one year, or to both"

Section 316A(1)(c) is interesting... it can be interpreted to mean that it is illegal to stop payment of a cheque... if one can prove that the stoppage was done BEFORE the cheque was issued.... meaning of "issued" can be debated for a long time!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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