NAMFISA cautions microlenders against retaining bank card and PIN codes as collateral
The Namibia Financial Institutions Supervisory Authority (NAMFISA) is cautioning the public and microlenders against retaining and possessing bank card and PIN codes, original identification documents, original passports, and original driver’s licenses of their borrowers.
“The retention of bank card and PIN codes, original identification documents, original passports, and original driver’s licenses is prohibited by section 23(1)(f) of the Microlending Act, 2018 (No. 7 of 2018) (“Microlending Act”),” the Authority said in a statement.
According to NAMFISA, the reason behind the prohibition is to protect microlending customers from being exploited by unscrupulous individuals and microlenders.
Accordingly, microlending, also known as microcredit, is a type of funding in which small loans are issued by individuals rather than banks or other credit institutions.
Microlenders found guilty of contravening section 23(1)(f) of the Microlending Act, which prohibits the retention of bank cards or personal information such as PIN codes amongst others are liable to pay penalties calculated at 10% of the annual value of loan disbursements in the immediate preceding financial year, the Authority said.
NAMFISA also noted that as per the provision of section 3(2) of the Microlending Act, any person who conducts the business of a microlender without being registered in terms of this Act commits an offence and is liable on conviction to a fine not exceeding N$500 000 or to imprisonment for a period not exceeding five years, or to both such fine and such imprisonment.
Moreover, a borrower may complain with NAMFISA if a lender has treated him or her unfairly. A Complaint Intake Form should be completed by the borrower and submitted to NAMFISA for further investigation.
NAMFISA exists to supervise financial institutions and financial services and to advise the Minister of Finance on matters relating to financial institutions and financial services in terms of the NAMFISA Act, 2001 (No. 3 of 2001).
When lodging complaints, the Authority advises all to call 061-290 5134//290 5000 or the toll-free number: 0800290500 (between 08h00 – 13h00 and 14h00 -17h00) for information.
“In person: Lower Ground Floor, 51 – 55 Werner List Street, Gutenberg Plaza. In writing via Fax: 061- 290 5161 Post: (P O Box 21250, WHK) Website: ww.namfisa.com.na Email: [email protected]“
“Borrowers are encouraged to contact NAMFISA and report microlenders that insist on keeping their bank card, PIN, and original identification documents by approaching NAMFISA’s complaints department,” the Authority concluded.
