Safaricom PLC recently reached out to a customer who had defaulted on an MShwari loan taken on his old SIM card over four years ago.
The man expressed his frustration on social media after discovering that the company had locked his KSh 2,299.79 MShwari Savings on his current SIM card until he cleared the outstanding loan.
In response to the incident, Safaricom explained to TUKO.co.ke that the bank, NCBA, implemented this measure to recover defaulted loans from old SIM cards.
This move by Safaricom has highlighted a significant issue for customers who have outstanding MShwari loans.
The telecommunications giant clarified that customers who default on MShwari loans taken on old lines could face having their current savings account balance frozen.
This policy came to light following the man’s social media outburst.
Safaricom’s Customer Care team reached out to the affected customer, stating, “The bank is in the process of recovering defaulted Mshwari loans from old lines.
Kindly repay, or the bank will recover the money within 7 days.”
Safaricom assured that once the customer repays the loan within the stipulated time, his MShwari savings would be unfrozen.
The company emphasized that this measure is part of their ongoing efforts to recover bad loans on their financial products.
This incident serves as a reminder to Safaricom customers about the importance of repaying their MShwari loans to avoid such complications.
The move to freeze savings accounts linked to defaulted loans underscores the company’s commitment to maintaining the financial integrity of its products.
Safaricom’s actions have sparked a discussion on social media, with many users expressing mixed reactions.
Some customers support the company’s stringent measures, citing the need for accountability in loan repayments.
Others, however, feel that the policy might be too harsh, especially for those who might not be aware of their outstanding debts from old SIM cards.
It is crucial for Safaricom customers to stay informed about their loan statuses and ensure timely repayments to avoid disruptions to their savings accounts.
Safaricom’s efforts to recover defaulted loans reflect a broader trend in the financial industry, where institutions are increasingly adopting stricter measures to mitigate loan defaults.
As Safaricom continues to implement these recovery strategies, customers are advised to monitor their MShwari accounts closely and reach out to customer service for any clarifications.
The company’s proactive approach aims to ensure that all customers uphold their financial obligations, thereby fostering a more responsible borrowing and lending environment.
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