Mwananchi Credit Ltd. is a financial services company in Kenya. The company offers services such as logbook loans, car financing, salary check-off , cheque discounting , and import financing . Mwananchi Credit Ltd. also provides a credit card business to many customers in Kenya. When customers pay their bills with post-dated cheques (PDSs), the company charges a fee for PDSs that is issued more than 14 days prior to the payment date. The company does not charge a fee for PDSs that are issued 14 days or less prior to the date of payment. The company charges a fee for PDSs that is issued more than 14 days prior to the date of payment. To avoid the PDS charge, a customer must present their PDS to Mwananchi Credit Ltd. within 14 days of the date of payment. If a customer presents their PDS within 14 days after the date of payment, there is no charge for that PDS.
If a customer presents their PDS more than 14 days after the date of payment, Mwananchi Credit Ltd. will discount their PDS by 25%.
What is meant by “cheque discount”?
The term “ cheque discounting ” is used to refer to the practice of writing a post-dated check and then depositing it into a savings account. The idea behind this practice is that the check will be cashed and the money deposited into an account. However, if the cheque was not written post-dated, it would take longer for Mwananchi Credit Ltd. to receive the amount of the check. Therefore, by writing a post-dated cheque, you can have your money credited to your account immediately.
What happens if a cheque is post-dated
If a cheque is post dated and you want to pay it back after the date of the cheque, then you need to post it again. If a cheque is post dated and there is no problem with the date of the cheque, we will accept it as if it was not post dated.
Is there any advantage in writing post-dated cheques?
Yes! Writing post-dated checks offers several advantages . First, you can deposit your check into an account and have it immediately credited to your account. Second, you can save on bank charges by depositing your check instead of using cash or a debit card to make purchases. Third, writing a post-dated check establishes good credit with Mwananchi Credit Ltd. because you are consistently depositing money into your account. Fourth, you can earn a higher interest rate on your savings account because most banks pay higher interest rates for larger deposits.
What is the disadvantage of writing post-dated cheques?
The only disadvantage of writing post-dated checks is that if you fail to deposit the check when it becomes due, you may be charged a late fee or even be charged an NSF fee by Mwananchi Credit Ltd. However, Mwananchi Credit Ltd will not charge this fee if they are notified in advance that you will not be making the deposit on time.
Can I write post-dated cheques to buy anything?
Yes! You can use a post-dated check to purchase anything from groceries to clothing. However, it is important to remember that when you write a cheque, you are committing yourself to pay for the item and it is important that you make sure there is enough money in your account before issuing the cheque.
How to Discount A Post-Dated Cheque: Cheque discounting process.
Applicant/customer fills out the application form and pays the fees. Then, he/she is required to fill out an authorization letter giving Mwananchi Credit Ltd the right to pay his/her cheques. This is to ensure that Mwananchi Credit Ltd will not be held responsible in case the cheque is not paid by the beneficiary’s bank.
Once this is done, Mwananchi Credit Ltd contacts the bank of the beneficiary and asks them to transfer money from his/her account into a savings account opened at Mwananchi Credit Ltd. The beneficiary’s bank informs Mwananchi Credit Ltd when they have deposited money into the customer’s account.
Mwananchi Credit Ltd then presents a post-dated check for payment and withdraws money from their savings account. The payment date of this check is usually seven days after it was issued. If the check is not paid by the bank, Mwananchi Credit Ltd pays the check from their savings account.
Mwananchi Credit Ltd charges a fee for this service. The amount of this fee is negotiable and depends on the value of the check that is presented for discounting.
Steps to Follow When Issuing A Cheque:
Before issuing a cheque, you should know that:
A cheque is a promise to pay given by the drawer.
The drawer should be mentally sound and able to make decisions.
The drawer should have enough funds in his/her account to meet the payment of the cheque.
When you are issued a cheque, you have the right to ask:
For information on who will pay if the cheque bounces
Who will pay if you are not satisfied with your cash
The amount of commission will be deducted from your cash.
You can ask for this information when you collect your cash or when you receive notice that your cheque has bounced. You can also ask for it in writing before accepting a cheque. If you do not receive satisfactory answers to any of these questions, do not accept that cheque as it may bounce, leaving you out of pocket. Some banks also charge a fee for issuing a check and collecting cash from them or from other banks on behalf of their customers.
Can you cash a post dated cheque early?
A cheque can be cashed only on the date written on it. If you want to cash your cheque ahead of the due date, you must contact the bank where the account is held and request them to cash it early. This may not be possible all the time, so make sure that you do not let go off your cheque too early. You can also ask for a post dated cheque, in which case you will have to wait for a specified date before cashing it.
What happens if you have accidentally cashed a post dated cheque?
If you have accidentally cashed a post dated cheque at Mwananchi Credit Limited, you must notify the bank and pay them back the amount of the cheque. You will have to pay interest on the amount that you have cashed.
How soon can I cash my cheques?
You can cash your cheques as soon as they are delivered to your branch or when they arrive in your post box. The reason why some banks take longer than others is that they may need to verify the information on your cheques against other documents or because of security checks. They may also need to wait for the cheque clearing system to process your cheque. In these cases, they will tell you the time frame in which you can cash them.
What happens if I do not have enough money to cover my cheque?
If you do not have enough money, you can ask your bank to cover the number of your cheques by using a bank guarantee. This is a document that confirms that you have sufficient funds in your account with the bank and that they will be able to pay back the number of your cheques when they are cashed. You must always make sure that the amount of the bank guarantee is more than what it will cost you to cover your cheques. For example, if you put up £2,000 as a guarantee and it costs £1,000 to cover it, then there will be £1,000 left over after covering all of your cheques. If this does not happen, then Mwananchi will not be able to pay your cheques and you will lose the money that you have put up as a guarantee.
How do I know when my cheques will be cashed?
Your bank is responsible for cashing your cheques. Mwananchi does not have access to the details of your cheque or guarantee and cannot tell you when they will be cashed. However, if you call your bank before 6:30pm on a working day, it may be able to tell you what time the next working day’s banking hours are. If this is not possible, then we suggest that you call your bank at 8:30am on the next working day. We also recommend that you check with your bank on how long it takes for them to cash a cheque after they have been cashed. If it takes them more than 3 working days, then please ask them to check if they can cash it before the end of August 2020
When To Discount A Post-Dated Cheque.
Mwananchi Credit Ltd will discount post-dated checks in the following instances:
1. When a check is presented for collection at a bank, the date on which payment is to be made appears on the face of the check or on an attached document. For example, if you give your landlord a check dated March 1, and it is payable to him/her at his/her bank.
2. When a post-dated check is drawn upon an account that has been opened for less than 30 days, and no funds are available when payment is due. In this case, Mwananchi credit ltd will contact you by telephone or mail to notify you of the shortage in your account and that your payment will be returned unless additional funds are deposited soon after the due date. If there are sufficient funds in your account to cover the amount of the post-dated check when Mwananchi credit ltd receives it for processing, we will honor the payment and debit your account for the amount.
3. When a post-dated check is presented for payment more than 30 days after the date of issue of the check. For example, if you give your landlord a post-dated check dated July 1 and it is payable to him/her at his/her bank on October 1. If Mwananchi credit ltd receives your post-dated check in late October or early November, we will honor the payment and debit your account for the amount.
What Happens When You Present A Post-Dated Cheque For payment?
If you give a post-dated check to someone else, be sure to explain that it is post-dated. Your payee should not deposit or cash the check before the date written on the check because Mwananchi Credit Ltd will not pay it until that date. If he/she deposits or cashes it before then, Mwananchi CreditLltd will charge you a fee of Ksh 300.00 for each time this happens. If your check is returned unpaid due to insufficient funds in your account when payment is due, we will charge you an additional fee of Ksh 300.00 for each time this happens.
How Much will you Discount A Post-Dated Check?
We will discount a post-dated check for 5% of the amount of the check.
What Happens If You Give Someone A Post-Dated Cheque That Is Undeliverable?
If your post-dated check has been returned unpaid due to insufficient funds in your account, we will charge you an additional fee of Ksh 300.00 for each time this happens.
What Happens If You Deposit A Post-Dated Cheque That Is Undeliverable?
If you deposit a post-dated check that is undeliverable, Mwananchi credit ltd will charge you a fee of Ksh 300.00 for each time this happens.
What Happens If You Cash A Post-Dated Cheque That Is Undeliverable?
If you cash a post-dated check that is undeliverable, Mwananchi credit ltd will charge you a fee of Ksh 300.00 for each time
What is the best way to discount a post dated cheque
If you want to discount a post dated cheque, you should contact your bank and find out the amount of discount they will give on such cheques. Then, you can ask Mwananchi Credit Ltd to issue you a check for the amount of discount your bank will give.
What is the best way to deposit a post dated cheque?
If you want to deposit a post dated cheque, Mwananchi credit ltd will charge an additional fee of Ksh 300.00 for each time this happens. If your deposit is insufficient (less than we have in our account), we will charge you a fee of Ksh 300.00 for each time this happens.
How long does it take to process a post dated cheque
If the check is undeliverable and we receive the payment in full, it will be processed within three business days. If the check is undeliverable and we receive only part of the payment, it will be processed within seven business days. If the check is delivered, but we do not have enough funds in our account to cover it, it will be processed within three business days. If the check is not delivered, it will be processed within seven business days.
What happens if I make a mistake while making out my cheque
If you make a mistake while making out your cheque, you can request that we re-issue your cheque to make the correct amount. If you request this within one business day of receiving your cheque, we will re-issue the correct amount for the same date. If you request this after one business day of receiving your cheque, we will not re-issue the correct amount. We cannot re-issue a post dated cheque once it has been cashed by Mwananchi Credit Ltd.
Do I need to give Mwananchi Credit Ltd my bank account information when I cash my cheques?
No, but if you want to deposit a post dated cheque and have insufficient funds in our account to cover it, then you must provide us with your bank account information. We will charge a fee of Ksh 250.00 to deposit post dated cheques.
How do I get a post dated cheque?
You can request a new post dated cheque by giving us your bank account information. We will charge a fee of Ksh 250.00 to cover the cost of processing the request and reissuing the cheque. You can also request that we re-issue your current cheque with a post date or two days after it is drawn. We will charge you the same Ksh 250 fee to do this as well.
What is the best way to stop payment on a post dated cheque
If you want to stop payment on a post dated cheque, you should contact your bank and find out how many times they will give this kind of check. Then, ask them for their authorization number and call us to stop payment on your cheque (this number can be found on your bank statement or in their billing department). We will charge you an additional fee of Ksh 300.00 for each time this happens. Please note that if you stop payment on a post dated cheque, we will charge you an additional fee of Ksh 300.00 for each time this happens.
How do I change the payment date on my post dated cheque
If you want to change the payment date on your post dated cheque, please call us on at Mwananchi Credit Ltd at 0709 147 000 or email us at [email protected] and we will be able to assist you. We will charge you an additional fee of Ksh 300.00 for each time this happens.
Do I have to pay the bank fees when changing or canceling a cheque
No, there are no bank fees associated with changing or canceling a check at Mwananchi Credit Ltd.
Why am I being charged a fee when canceling my cheque?
We are in business to protect our depositors and make sure they get their money back quickly and efficiently, so we do charge a fee when we receive a cheque that is not in good order and cannot be processed.
What is the cost of changing or canceling my cheque at Mwananchi Credit Ltd?
There is no cost for changing or canceling your check at Mwananchi Credit Ltd.
How long does it take for me to get my money after changing or canceling my cheque
We will have your cheque processed and returned to you within 5 business days.
How much money can I write on my cheques
At Mwananchi Credit Ltd you can write as much money as you want on your cheques.
What if I want to write a cheque to someone else? What are the limitations?
You must write the amount for each person or thing that will be covered by the check. If you need more than one cheque, we recommend that you order multiple checks from us. You cannot use our cheques to pay bills or any other financial obligation. We also do not accept credit cards for any reason.
What happens if I try to cash a post dated cheque at another financial institution?
If you try to cash a post dated cheque at another financial institution, the financial institution will refuse your cheque. If you do not have any money in your bank account, or if you cannot make the payment because of insufficient funds, then you will be charged an additional Ksh 300.00 fee and will not be able to make payment on your cheque.
My cheque has been returned by the bank, why did they return it?
If we receive any post dated cheques that are returned by the banks for any reason other than insufficient funds or bad order, we will charge Ksh 300.00 as well as the standard overdraft fees.
How much do I have to pay to have my post dated cheque returned?
If you have any questions about this policy, please call us at 0709 147 000 or email us at [email protected]
How Much Interest Can You Charge on a Post dated Cheque at Mwananchi Credit Ltd.?
Interest will be charged on all post-dated cheques issued by Mwananchi Credit Ltd. if the cheque is not presented for payment on its due date. The interest rate will be determined by the Bank of Canada and will be as follows:
How Long Can I Delay Payment on a Cheque?
A cheque may be delayed up to six months from its date of issue, but interest will begin to accrue immediately. Please note that if your cheque is post-dated for more than six months, you will be charged interest for each day that it remains unpaid beyond the six-month period.
How Can I Get a Cheque Delayed? at MwananchiCredit Ltd.?
Cheques can be delayed in the following ways:
1. The cheque may be returned for any reason, and you will have to post it again.
2. You may ask the bank to delay the cheque for a specified period, or until you come into possession of certified funds from your employer or someone else whom your employer has agreed to pay out on your behalf. If your employer gives you an instrument that authorizes payment out of his/her own funds, then this will be acceptable as certified funds in lieu of other sources of funds as described above.
3. You may arrange for a friend or relative to post the cheque at our office on your behalf and we will delay it accordingly to enable you to pay it back over a specified period of time. We do not charge any fee for this service (however, if there is a shortage in our own cash reserves we reserve the right not to accept
How do I pay by Cheque?
Cheques can be paid by mail, cashier’s check or money order. This can be done at our office or through one of our branch offices.
What happens if I am running short of cash?
If you are short on cash, we may try to help you in some way. We may arrange for a friend or relative to post your cheque at our office on your behalf, and we will delay it accordingly to enable you to pay it back over a specified period of time. We do not charge any fee for this service (however, if there is a shortage in our own cash reserves, we reserve the right not to accept your cheque).
We hope the above answers your questions. Please feel free to contact us at this number.
Phone: 0709 147 000, or by email at: [email protected]