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While there is no specific law named "Credit Repair Law" in Kenya, the laws governing credit repairs are defined under various acts. In particular, the Microfinance Act of 2006 and the Banking Act of 2009 are notable. Both acts were established to aid in regulating credit facilities and encouraging responsible borrowing. They also entail proper conduct by lenders and protection for borrowers to help prevent unnecessary financial distress.
Legal advice is beneficial when dealing with complex matters like clearing bad credit records or disputes with credit agencies. A lawyer can help interpret technical financial terms, inform you of your rights and negotiate on your behalf if there's a disagreement with your credit score or report. If you've been a victim of a fraudulent activity or identity theft that has negatively affected your credit, a lawyer can help you navigate the legal procedures for effective dispute resolution.
The key laws operating in Kenya are divided into the Consumer Protection Agenda and the Microfinance Act of 2006, and the Banking Act of 2009. It is illegal for a lender to share information regarding your credit without proper authorisation. These laws also demand credit information agencies to maintain accuracy and fairness in their reporting. Furthermore, any disagreements over your credit score or report should be investigated and acted upon promptly.
Yes, you can undertake credit repair yourself by reviewing your credit reports for errors, filing disputes with credit information bureaus and negotiating with lenders to remove negative information. However, the process can be complex, hence you may need legal assistance.
A lawyer can provide legal advice and help you navigate the often confusing field of credit repair. They can also represent you in any disputes or legal issues that may arise during the process.
You have a right to dispute any incorrect information on your credit report. The creditors are then obliged to investigate and, if necessary, correct the issue.
The length of time required to repair credit can vary depending on the specific issues involved. Depending on the complexity, it can take anywhere between a few months to a couple of years.
The credit repair process generally involves checking your credit reports, identifying any discrepancies, disputing those inaccuracies and then focusing on responsible financial management.
You might consider contacting governmental bodies such as the Central Bank of Kenya or organizations like the Credit Information Sharing Association of Kenya for more information. Other resources that may be of help include legal aid clinics within the local universities such as Kenyatta University and University of Nairobi.
If you require legal assistance, consider consulting with a lawyer who specializes in financial law or credit repair. They will help you understand your situation better and craft a plan to address your credit issues effectively. Be prepared with all necessary documents such as credit reports and correspondence with creditors. Remember, repairing credit takes time, patience and careful financial planning.
