Equity Bank and Norern Auctioneers have come under sharp criticism following a concerning exposé by Leaked.co.ke that revealed the shocking way they are allegedly handling customer loan recovery.
One particular case that has sparked public outrage involves a threatening message sent to a customer, which reads in part, “We know you are ignoring our CALLS, PAY your EQUITY loan NOW, Failure to which we will Authorize our officers to visit your Home/Work Place for Auction. We are done ACCOMMODATING your ignorance and fake promises.”
The message was signed by Laureen from Norern Auctioneers and included her direct phone number and email address, raising serious questions about the professionalism and legality of their approach.
The tone of the message is harsh and clearly meant to intimidate. Accusing a customer of “ignorance” and “fake promises” is not only disrespectful but completely out of line for any financial institution or collection agency.
It goes against basic standards of communication and customer care. More worrying is the threat to send officers to someone’s home or workplace, which could be seen as harassment.
In Kenya, debt collection must be conducted within the law, and such threats without legal backing may amount to intimidation.
The involvement of Norern Auctioneers in this kind of communication raises bigger concerns about how closely they are working with Equity Bank. If Equity has allowed this kind of language and tactic to be used on its behalf, then it must bear the blame as well.
A bank has the responsibility to ensure that any third parties it hires or partners with operate within ethical and legal boundaries. The decision to use auctioneers who send out threatening messages is not just a poor business choice it may also put the bank in legal trouble.
There is also the issue of how customer data is being handled. The message sent by Norern Auctioneers clearly shows they have direct access to customer contact details.
If Equity Bank is sharing customer information with third parties without proper consent, it could be in violation of the Data Protection Act.
Kenyan law is very clear about how private data should be handled, and breaches of this nature should not be taken lightly.This incident shows a complete disregard for customer rights. Just because someone owes money does not mean they deserve to be bullied or disrespected.
People who are struggling with loans need support and understanding, not threats. The use of such abusive methods could damage people’s mental health and worsen their financial situation.
It also tarnishes the image of institutions that are supposed to promote financial inclusion and trust.
The Central Bank of Kenya and the Office of the Data Protection Commissioner need to act fast and investigate this case. If Equity Bank and Norern Auctioneers are found to have violated consumer protection laws, then firm action must be taken.
Allowing such behaviour to go unpunished would set a dangerous precedent and send the wrong message to other financial institutions.Banks must treat customers with dignity, even when recovering debts. Using fear and insults to pressure people is not only unethical it is dangerous.
This exposé is a wake-up call for regulators and the banking industry to ensure that respect, fairness, and legality are at the centre of all customer dealings.
