Long-running and contentious disputes can be draining—emotionally, financially, and time-wise. This was the terrible experience of Mr. Chali Chatu, an entrepreneur and accounting enthusiast whose credit dispute with Tusome Education Loans (TEL) spanned over 15 years. What started as a simple query over a loan he never benefited from grew into a distressing legal dilemma that threatened his career and well-being.

Mr. Chatu had applied for a job with his County Government, a prospect that would have greatly boosted his career. As part of the requirements, he needed a Credit Reference Bureau (CRB) clearance certificate. It was then that he discovered he had been negatively listed by TEL for non-repayment of a student loan—a loan he had disputed for over a decade. The situation was made worse by mounting penalties and interests, which had accumulated to Kes. 500,000. This weighed heavily on him, and the regular calls from debt collectors only exacerbated his psychological and emotional state.

The controversy began with Mr. Chatu’s 1995 application for a TEL loan, which he abandoned after earning a scholarship to study overseas. The funds from TEL were never disbursed, yet records inaccurately reflected an outstanding loan in his name. His attempts to settle the issue with TEL, both in person and over many emails, were ineffective, allowing the problem to fester.

Mr. Chali, desperate and fearful of losing his County Government job opportunity, approached Tatua Center in May 2021, hoping for a speedy and peaceful resolution. Tatua Center, an ADR Center which specializes in financial dispute resolution, came in to aid. Mediation, being a voluntary and non-adversarial process, provided a neutral platform where both parties could engage in constructive dialogue. The Tatua mediator, accredited by the Kenyan Judiciary, facilitated discussions between Chali and TEL to find a solution.

The first mediation session, held in July 2021, revealed that the underlying reason of misunderstanding stemmed from a lack of clarity in TEL’s records. Chali had not followed through with the loan because he didn’t need it after securing the scholarship, yet the loan status had remained active. TEL recognized the error and misunderstanding during mediation. A mutually agreeable settlement was reached, and TEL withdrew the claim, clearing Chali’s record.

Tatua Center’s mission is to enhance business through efficient management of disputes in financial services by providing prompt, cost-effective, and amiable dispute resolution processes. This case is a testament to the power of mediation in restoring relationships, clearing misunderstandings, and allowing parties to move forward with their lives and businesses. We encourage anyone facing disputes within the financial services sector to consider mediation as an efficient way to achieve resolution.

For more information on how Tatua Center can assist you with your credit dispute, please contact us directly for consultation.