Interest Rates Advisory Centre : : :The Irac Process

The IRAC Process

The IRAC Process is a detailed inspection of every last detail of your Loan, Mortgage or Overdraft account/s. It provides an easy, inexpensive way for you or your company to confirm that your Loan, Overdraft or Mortgage facility is run accurately by your lender, and that it is run in conformity with both your contract with your lender and with applicable law.

The result of The IRAC Process is a comprehensive Credit Verifier! Report on your facility/facilities on

whether or not there is an interest overcharge by your lender.
whether or not your lender has conformed to the mandatory provisions of The Banking Act , Cap. 488 of the Laws of Kenya
whether or not your lender has conformed to the mandatory provisions of The Central Bank of Kenya Act , Cap. 491 of the Laws of Kenya.

The IRAC Process uncovers "errors" by the bank/lender that you, or your accountant, would otherwise never discover.

Consider this; even Auditors when preparing Annual Financial Statements only report Finance Costs. They do not interrogate Finance Costs, and do not question the figures given by the bank as interest charged on commercial loans, overdrafts and the like. This is a major oversight that renders Annual Financial Reports incomplete.

The objective of The IRAC Process is not litigation. Rather, it is to provide you with independent assurance that your Finance Cost is accurately stated by your bank or lender. What you do with the information IRAC provides through The IRAC Process is up to you. On our part, IRAC recommends and promotes amicable dialogue with the bank/lender. In many cases, banks appreciate the feedback that The IRAC Process gives them about their back-room operations and short-comings. Indeed, IRAC has been consulted by some banks to provide second opinions on disputed debts, and to intermediate between the bank and customers.

Once an Interest Recalculation report is produced, IRAC will discuss its findings with the client and advise on the available options. This normally means a meeting with the bank/lender to discuss the account, and the preparation of a proposal either for renegotiation and re-scheduling of loan terms and conditions, or re-banking elsewhere if the Client's confidence in the bank/lender is compromised.

This way, at the very least, The IRAC Process gives you peace of mind that you are paying only what you should pay and not a cent more.

In the event that your bank/lender refuses to make a refund of overcharged interest where proved through The IRAC Process , then IRAC stands by the Credit Verifier! Report as Expert Witness in any litigation with or against the bank.

Please refer to decided Cases where The IRAC Process has been upheld by the Commercial Division of the High Court of Kenya {Read IRAC's Case Studies}

Data-Processing Starter Packs

Due to the practical difficulty of querying bank statements, IRAC provides clients who wish to do their own data-processing with a Starter Pack that is compatible with Credit Verifier! Proper and accurate use of the Data-Processing Starter Packs assists clients to reduce the cost of IRAC's service, as payment is only made for actual Interest Recalculation.

To obtain a Starter Pack, contact IRAC's Client Service Division.

Litigation Support and Expert Witnesses

If the client is already in litigation, or is thinking about instituting legal proceedings against the bank/financial institution, IRAC's consultants provide a technical review service of the legal Pleadings to ensure their technical accuracy. Our consultants are also at hand to give evidence in court as Expert Witnesses.

Banking Advisory Services

IRAC has amassed a wealth of information that enables its consultants to give comparative information on different banks and their services. Clients can get to know which bank or financial institution is presently offering the lowest interest rate, the highest banking charges, or the best overall deal for the facilities desired. In a short while, IRAC will issue an Index of Kenya's best and worst banks, mortgage lenders and financial institutions, based on hard evidence and nothing less .

Please Contact our Client Service Division for more information about our services.