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Communications Regulatory Authority shoots down MTC’s 18% collection commission

Communications Regulatory Authority shoots down MTC’s 18% collection commission

The Communications Regulatory Authority of Namibia (CRAN) said that Mobile Telecommunications Limited, MTC, may not charge consumers a collection commission of 18% on any debts emanating from service level agreements for the provision of telecommunication services.

The decision by CRAN follows a consumer complaint which was received during 2013 from a consumer complaining that he was charged a collection commission of 18% due to a debt that arose from a subscriber agreement for the provision of telecommunications services with MTC.

In a statement last week CRAN said despite MTC’s Subscriber Agreement which states that if the subscriber breaches the contract, MTC shall be entitled to recover all legal and other cost which shall include 18% collection commission that may be legally recovered from the subscriber by MTC, Cran is mandated to ensure consumers are protected from exploitation and abuse in respect of price, quality, variety of services and user equipment supplied.

The Authority concluded and resolved as follows: MTC may not charge consumers a collection commission of 18% on any debts emanating from service level agreements for the provision of telecommunication services; all debts arising from subscriber agreements between consumers and MTC are to be charged a collection commission of 10% only in line with the Magistrate’s Court Rule; and the Magistrate Court Rules are aimed at ensuring that tariffs that have a bearing on collection of debts are reasonable, fair and equitable. The charges by the debt collectors are not exempt from the Magistrate Court Rules.

Meanwhile the Authourity said aggrieved and affected consumers are encouraged to manage their cases directly with MTC.

“If such consumers feel their cases have not been addressed within 14 days from the date in which it was formally reported to MTC, then they should follow CRAN’s consumer complaint procedures. Should the public have any enquiries in this regard, please do not hesitate to contact Cran’sHead Legal Advice,” they added.


Caption: Emilia Nghikembua CRAN’s Head Legal Advice


 

 

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