CAK DECISION REGARDING MISLEADING REPRESENTATION AND UNCONSIONABLE CONDUCT BY MOGO AUTO LIMITED

4 Okt 2024CAK competition determinations

Muhtasari

determination

Inawahusu: asset financier Mogo Auto Limited (‘Mogo’) and its customers
Kilichobadilika: The Authority and Mogo entered into a settlement agreement in which Mogo has been ordered to pay a penalty, remedy the complainants, amicably resolve all pending complaints, resolve future complaints within the stipulated timelines, refrain from engaging in similar conduct, and undergo consumer compliance training.
Tarehe za mwisho: 30 Ago 2025 — Mogo and its employees to undergo consumer compliance training
Kiasi: KES 10,851,473.20 — pecuniary penalty for violating the Competition Act CAP 504 (‘the Act’) by engaging in false and misleading representation and unconscionable conduct against its customers
KES 344,939.00 — sum of excess amounts charged in repayment of three loan customers’ loans, and the difference in the dollar exchange rate applied during the loan issuance
KES 2,100,000.00 — facility applied for by the first complainant
USD 17,828.16 — the first complainant’s facility at the exchange rate of KES. 117 to USD 1
KES 117.00 — exchange rate to USD 1
KES 300,000.00 — facility taken by the second complainant
KES 392,000.00 — balance indicated on the second complainant’s loan statement
KES 310,000.00 — 50% financed by Mogo of the purchase price of a motor vehicle
KES 517,212.00 — loan agreement entered into by the fourth complainant
KES 726,000.00 — the fourth complainant’s facility balance
KES 500,000.00 — final outstanding loan amount to be paid by the first complainant to Mogo
KES 108,745.10 — excess amounts charged by Mogo to be refunded to the second complainant
KES 80,915.00 — difference between the exchange rate applied during loan application and issuance to be refunded to the third complainant
KES 155,279.00 — difference between the exchange rate applied during loan application and issuance to be refunded to the fourth complainant
Hatua inayohitajika: Pay a penalty of KES. 10,851,473.20; remedy the complainants; amicably resolve all the pending complaints lodged at the Authority; resolve any future complaint within the stipulated timelines; refrain from engaging in similar conduct in future; and undergo consumer compliance training by 30th August 2025.