H&M Microfinance Legal Terms and Conditions

Thank you for choosing H&M Microfinance as your financial institution. Please note the following important information about your H&M Microfinance Account and your relationship with H&M Microfinance. If you have any questions, please contact us at +233 (0) 595 741 614.

• Anti-Money Laundering Identity Verification In compliance with Anti-Money Laundering legislation, we may verify your identity as required by law. You agree to provide any necessary documentation for this purpose. Until your identity verification is complete, your Account cannot be opened, and you will not be entitled to any interest or other benefits derived from the Account. You agree to our use of credit bureaus, credit reporting agencies, or similar third parties to verify the information you provide, and you agree to provide any records that may be required to open and maintain your Account, including your occupation, employer’s name, and any other information necessary under applicable law.
• Account Statement Although we may not be required to provide you with an Account statement, we may do so by mail or electronically. If you receive an Account statement, it will be sent to the primary Account holder’s last known address or other means of delivery, and you must ensure that your contact information is up to date.
• Verification of Transactions You are responsible for reviewing your Account activities and transactions, including any fees charged, at least once every 30 days. You must ensure that all Account activities were properly recorded, authorized, and free of omissions. You may review your Account activities by telephone, online, through Mobile Banking, or by reviewing your Account statements.
• Electronic Communication Any electronic communication received from you or in your name will be considered duly authorized by you. You agree to waive any right to object to the introduction of any copy of electronic communications as evidence in any legal, administrative, or other proceedings.
• Privacy Principles By applying to open an Account, you consent to the collection, use, and disclosure of your personal information in accordance with the H&M Microfinance Privacy Code. The Privacy Code is part of these Personal Account Terms and Conditions, and your agreement to these terms indicates that you accept the terms of the H&M Microfinance Privacy Code, See here.
• Right of Set-Off We reserve the right to use all the money in your Account(s) to pay any debts or obligations you owe us in the same or other currencies. You agree to allow us to use some or all of the money in your Account to buy any currencies necessary to pay debts you owe us.
• Electronic Notices to Client We may send you notifications, alerts, and other communications electronically, including email, online messages, and Mobile Banking app. These communications may include alerts related to card suspension, identity theft, and other fraud or security-related activities. We may also send you notifications for legal disclosures and changes to these Terms and Conditions.
• Changes to this Agreement We may change these Account Terms at any time, and we will provide you with notice of the changes at least 30 days before they take effect. We will notify you through our statements, letters, or other communication channels.

Definition of Default:

H&M Microfinance considers a borrower to be in default if they have missed payments for 30 consecutive days or more for monthly payments or 7 consecutive days or more for weekly payments. H&M Microfinance's policy on default means that if a borrower misses a payment for 30 days or more (for monthly payments) or 7 days or more (for weekly payments), they will be considered in default. This means that the borrower has failed to meet their repayment obligations on the loan. For example, if a borrower has a monthly loan repayment due on the 1st of every month, and they miss the payment due on January 1st and do not make any payments for the next 30 days, they will be considered in default. Similarly, if a borrower has a weekly loan repayment due on Monday of every week, and they miss the payment due on Monday and do not make any payments for the next 7 days, they will also be considered in default. When a borrower is in default, H&M Microfinance will take appropriate action to recover the outstanding amount. This may include sending reminders to the borrower to make payments, charging additional fees and penalties, and taking legal action if necessary. Therefore, it is important for borrowers to make timely payments to avoid default and any additional charges that may be incurred.

Actions Taken in the Event of Default:

If a borrower defaults on their loan, H&M Microfinance will take appropriate action to recover the outstanding amount. These actions may include sending reminders to the borrower to make payments, charging additional fees and penalties, and taking legal action if necessary.

Support for Borrowers Struggling to Make Payments:

H&M Microfinance understands that borrowers may experience financial difficulties that make it difficult to make payments on time. To support such borrowers, they encourage them to reach out to their customer service team to discuss their options.

Social Media Activity, Digital Footprints, and Phone Data with H&M Microfinance

I hereby provide my consent to H&M Microfinance to access my social media activity, digital footprints, and phone data for the purpose of assessing my creditworthiness and eligibility for a loan. I understand that this information will be used solely for this purpose and will be kept confidential by H&M Microfinance. I understand that H&M Microfinance may access and analyze the following data:

• Social media activity, including posts, comments, and messages
• Digital footprints, including browsing history, search history, and online behavior
• Phone data, including call logs, SMS history, and contacts

I acknowledge that H&M Microfinance may use this information to perform a credit check and assess my creditworthiness. I understand that the information gathered may be used to determine my eligibility for a loan, and to personalize and improve the loan products and services offered by H&M Microfinance.

I agree that H&M Microfinance may share this information with third parties as necessary to provide the loan products and services, and to comply with applicable laws and regulations. I acknowledge that I have the right to withdraw my consent at any time by contacting H&M Microfinance.

At H&M Microfinance, we are committed to providing access to financial services to people who are financially excluded from the traditional banking system. We use financial technologies to offer cheap and low-cost products/services at a faster speed, enabling you to take control of your financial wellbeing and realize your financial goals.

Release and indemnity, fax and email transmissions

I hereby have requested H&M Microfinance to act on written instructions transmitted by me through facsimile or email, and whereas H&M Microfinance has confirmed its readiness to act on such instructions that appear to originate from me, I hereby provide a release and indemnity to H&M Microfinance in the following form. Now, therefore, I hereby acknowledge and agree to the following terms and conditions:

1. I acknowledge that it may not be practical for H&M Microfinance to authenticate all fax or email messages that purport to come from me.
2. I agree that all faxed or emailed instructions, mandates, consents, commitments, and similar documents that purport to come from me shall be considered as given by me in the form actually received by H&M Microfinance, even if the message differs from the one, I intended to send due to equipment malfunction, communication distortion, or other reasons, and I shall be bound by such instructions.
3. I waive any rights I may have or acquire against H&M Microfinance arising from losses or damages, including issues related to notice of lost or cancelled foreign drafts and cheques, which I may suffer because H&M Microfinance acted on purported faxed or emailed instructions, and I agree to indemnify H&M Microfinance against any claims, demands, or actions made against it or losses or damages suffered by it as a result of acting on such instructions.
4. I agree that, with respect to purported faxed or emailed instructions for payment by cheque, draft, mail or telegraphic transfer for the benefit of third parties, the purchase or sale of any anything, or the transfer of money, same-day value may only be given if the message is received by H&M Microfinance a reasonable time before the close of its business to the public.
5. I agree that H&M Microfinance shall not be liable for any errors or delays in transmissions, misinterpretation on receipt, or any loss or damage resulting from any cause as a result of H&M Microfinance allowing this agreement, excluding losses arising from the proven unlawful or fraudulent acts of H&M Microfinance's employees.
6. I agree to implement and adhere to any procedures or restrictions imposed by H&M Microfinance from time to time regarding the sending of faxed or emailed instructions.
7. I agree that this release and indemnity will not be affected by any failure by H&M Microfinance to impose any or sufficient procedures or restrictions, or to ensure that any or all of them are adhered to.
8. I agree that H&M Microfinance will not be obliged to act on any purported faxed or emailed instructions and may at any time, on written notice sent to me, withdraw from the arrangements envisaged in this document.
9. I agree to send the original copy of any such written instruction or confirmation of fax or email, clearly marked "confirmation" of fax/email, dated within at least 21 working days following the transmission.

Accuracy of Information

I hereby apply for a Loan with H&M Microfinance. I understand that the information given herein and the documents supplied are the basis for the loan application, and I therefore warrant that such information is correct. I further undertake to indemnify H&M Microfinance for any loss suffered as a result of any false information or error in the information provided to H&M Microfinance.

Disclosure to Credit Reference Bureaus

H&M Microfinance will obtain information about you from the credit reference bureaus to check your credit status and identity. The bureaus will record our inquiries, which may be seen by other institutions that make their own credit inquiries about you. H&M Microfinance shall also disclose your credit transactions to credit reference bureaus in accordance with the Credit Reporting Regulations, 2020 (L.I 2394).

Agreement to Account Legal Terms - On H&M Microfinance Website and Legal Terms and Other Information on this Page (Account Legal Terms)

I have read the Account Legal Terms, including the use of your data, social media activity, digital footprints, and phone data with H&M Microfinance, as well as the disclosure to credit reference bureaus. I have also reviewed the actions taken in the event of default, the release and indemnity terms, and the provisions regarding fax and email transmissions. I acknowledge that additional details are included in the loan agreement, and I agree to all the terms outlined.

I hereby affirm that I have carefully reviewed and understood all the information provided on the H&M Microfinance website, including the account legal terms. I confirm my consent and acceptance of all the terms and conditions specified therein.