Interest Rates Advisory Centre : : About Us

Why IRAC?

In the thousands of cases IRAC has handled so far, the interest charged by banks on Loans, Mortgages and Overdrafts is wrongly calculated in more than 99% of the cases analyzed.

These interest overcharges have many causes. They range from innocent mistakes to systemic inefficiency. IRAC has even documented fraudulent conduct by some lenders.

Ignorance is bliss, but it costs you dearly.

Interest overcharge refund claims amount to thousands and even millions of shillings depending on turnover and the bank involved.

While some banks are worse than others, they all regularly make mistakes. When these mistakes are made, they have to be paid for by someone. The person who pays for mistakes is the one who is ignorant or who lacks the capacity to verify interest calculations.

That person is you or your company.

Not even auditors and accountants can pick up interest calculation errors in the normal course of their work. This is how and why you pay for 99% of all mistakes.

IRAC has developed a process that scrutinizes both your bank account and your contractual documentation. The IRAC Process verifies the accuracy of your lender's interest calculations from the first activity on the first day in your Overdraft, Loan or Mortgage account. This is a complex and time-consuming process.

However, the benefits are invaluable when mistakes discovered run into thousands and millions of shillings. IRAC provides an easy, inexpensive way for you or your company to find out if your loan, overdraft or mortgage facility is being run accurately and in terms of your contract with the bank.

At the end of the The IRAC Process our software will generate a report that IRAC stands by against the bank statements in court if necessary.

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What Does it Involve?

Legal Analysis of your Banking Facility Contracts as read with and The Central Bank of Kenya Act and The Banking Act.
Electronic Formatting of bank statements into soft-copy (diskette or CD) for safety and easier financial analysis of banking data.
The Application of appropriate information technology and interest recalculation software - Credit Verifier! developed by IRAC.
Practical training on banking issues, where to bank, negotiation of terms of banking, what to look out for and verification of finance costs(interest charged and other finance costs).

The IRAC Process therefore combines the best of relevant Legal consultancy, Information Technology and Banking & Interest Recalculation Software Development & Consultancy. No other consultancy in Kenya, or indeed East and Central Africa offers these services. Maybe even the whole wide world.

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Our Target Clientele

We serve both clients and all Licensed Banks and Specified Financial Institutions in Kenya that are governed by The Banking Act, The Central Bank of Kenya Act and The Building Societies Act. This means any individual borrower or company with credit (borrowing) facilities with a bank or financial institution.

We also serve clients in Common Law Jurisdictions, applying English mercantile law traditions. Our processes and software are compatible with the major financial and banking systems in the world.

If you or your company have a Loan,an Overdraft, a Mortgage, a Hire Purchase Account or an interest bearing investment account, The IRAC Process will be of great benefit to you.

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Benefits To You.

The key benefit is Peace of Mind - that your finance costs (interest charged) are accurately stated and that you are paying only what you should pay and not a cent more. Our other value-adding services include: -

Detection of interest overcharges leading to claims for refunds.
Protection from intimidation by banks based on the legal and regulatory framework.
Enhanced knowledge of the way banks operate and better negotiating ability. After analysis, IRAC highlights the points of deviation from the contractual agreements. These insights form the basis of subsequent negotiations with the bank on banking facilities. IRAC always recommends friendly dialogue with the bank.
Legal and Technical support and advice on your current and future facility requirements.
Negotiations with the bank on rescheduled repayment facilities, if anything is outstanding.
Sound banking management practices.

With all these value-adding services, you, or your company, are certain to have Peace of Mind.

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What we require for The IRAC Process

Clear Copies of:

All bank account statements, from the first to the most recent one.
All Banking Facility Letters or Hire Purchase agreements relating to your bank account or associated bank accounts.
All correspondence from the bank and to the bank, e.g. notification of interest rate change or enhancement or reduction of limits.
The Security document - Legal Charge, Mortgage Deed or Guarantee.

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Cost of The IRAC process:

Data-processing is labour intensive. If the Client outsources data-processing to IRAC through The IRAC Process payment is made for both data-processing and Interest Recalculation. There is a second option, which is to subscribe to IRAC's Monthly, Quarterly, Bi-Annual or (other) Periodic Interest Recalculation Update Service.

Whichever option you choose, you are certain to get value and, in most cases, a refund for overcharged interest. The cost of data-processing by IRAC through The IRAC Process is influenced by

The complexity of the account(s)
The structure of your facility (ies)
The number of account(s)
The length of time it takes to process your financial data. Our consultants will be pleased to study your facility(s)and give a time and cost estimate.

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