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Regulator orders N$1.9 million to be paid back to consumers

Regulator orders N$1.9 million to be paid back to consumers

The Namibian Financial Institutions Supervisory Authority (NAMFISA) has ordered over N$1.9 million back into consumers’ pockets as complaints and market conduct malpractices continue to increase.

During the period October 2021 to December 2021, the regulator received various complaints from consumers of long and short term insurances, retirement funds and micro-lenders.

The complaints were broadly related to wrongful deductions, non-payment of motor vehicle claims, unpaid pension benefits, non-payment of beneficiary benefits and non-payment of funeral benefits.

Kenneth Matomola, NAMFISA CEO said the regulator has a dedicated complaints department that investigates complaints on behalf of consumers of non-bank financial services and products at no cost to the consumer.

“Consumer protection is key to our operations, and therefore I encourage consumers to know their rights and responsibilities as users of financial service products,” said Matomola.

An aggrieved consumer can lodge a complaint against non-bank financial institutions or financial intermediaries (registered and doing business in Namibia) with NAMFISA. These complaints generally include extensions of repayment periods without consumers’ consent, repudiations of insurance claims, non-payment of pension benefits, excessive interest charges, illegal deductions and non-cancellations of contracts, amongst others.

NAMFISA exercises regulatory and supervisory oversight on institutions registered with it and has urged consumers to only do business with registered entities, which can be confirmed by visiting the NAMFISA website or contacting their offices.

Meanwhile, the regulator said the resolution of complaints resulted in consumers receiving a combined total of well over N$1,9 million from Non-Banking Financial Institutions that are regulated by NAMFISA.


About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys