NAMFISA issues warning against retention of personal documents by microlenders
The Namibia Financial Institution Supervisory Authority (NAMFISA) has issued a stern caution to the public and money lenders regarding the retention of borrowers’ bank cards, PIN codes, original identification documents, passports, and original driver’s licenses by microlenders.
This warning comes in accordance with the Microlending Act, 2018 (No. 7 of 2018), and is aimed at safeguarding consumers from potential exploitation.
As a regulatory body overseeing non-bank financial sectors, NAMFISA plays a crucial role in ensuring fair practices within the financial market.
NAMFISA Chief Executive, Kenneth Matomola emphasized that the prohibition of retaining bank cards and PIN codes is designed to protect microlending customers from unscrupulous practices. Consumers of financial services, being the most vulnerable members of the financial system, require vigilant protection against market abuse.
Matomola highlighted that the retention of bank cards, PIN codes, and original identification documents facilitates market conduct abuse, posing a threat to the integrity of the Namibian financial system.
He stated, “Consumers benefit from NAMFISA’s protective measures through appropriate legislation,” referring to section 23 of the Microlending Act, which expressly prohibits such practices.
Microlenders found guilty of contravening the Microlending Act may face penalties amounting to 10 percent of the annual value of loan disbursements in the previous financial year. Additionally, those conducting microlending business without proper registration, as per section 3(2) of the Microlending Act 2018, may face fines up to N$500,000 or imprisonment for a maximum of five years, or both.
To address concerns and potential violations, borrowers are encouraged to contact NAMFISA through the Toll-Free Number – 0800 290 500. Complaints can also be registered on the NAMFISA website www.namfisa.com.na or via email at [email protected].
