Mogo Sued Over Unfair Loan Terms, Hidden Charges

 Asset financing company Mogo Auto Limited is currently facing a representative lawsuit initiated by three Kenyans regarding alleged predatory lending practices that have reportedly driven thousands of Kenyan borrowers into financial distress.

  Click here to connect with us on WhatsApp The three individuals, Caroline Nderitu, Wilson Mbogo Gikonyo, and Joseph Muraya Wangari, have accused the lender of enforcing unfair loan conditions, hidden fees, and aggressive recovery methods that have left consumers ensnared in debt. In their affidavit submitted to the High Court, Nderitu, the first applicant, stated that she had "directly experienced the lending and recovery practices in question," characterizing them as oppressive and financially ruinous. She contended that Mogo’s loan documentation was "misleading and deceptive," failing to reveal the actual cost of credit and the consequences of dollar-indexed repayments. Gikonyo, the second applicant, informed the court that he was subjected to "identical repayment and repossession procedures" as thousands of other borrowers. He asserted that Mogo’s lending model "imposed exorbitant compound interest rates far exceeding market limits," leaving many borrowers unable to reclaim their vehicles even after making significant repayments. The third applicant, Wangari, who provided the supporting affidavit, claimed that Mogo’s actions "constitute a pattern of predatory lending, targeting vulnerable consumers with misleading assurances of affordable financing." According to Wangari, the company bundled mandatory insurance premiums and repossessed assets "without due process," practices he described as exploitative and unlawful. The applicants are requesting the court’s authorization to file a representative suit on behalf of all affected consumers and to have Mogo’s loan agreements and recovery model declared unconscionable, null, and void. They are also seeking injunctions to prevent further repossessions and restitution of funds charged under the disputed terms.

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