Credit Consumer Bill welcomed

The Economic Policy Research Association says the promulgation of the Consumer Credit Bill (CCB) will lead to responsible lending protection and increased consumer protection. The Bill, which is currently making its rounds through public consultation, will repeal the Usury Act, the Credit Agreements Act and the Micro-Lending Act.Throwing its weight behind the Bill, the lobby group said it would set the foundation for responsible credit practices. “The CCB sets a comprehensive foundation for responsible credit practices, protecting consumers and promoting fair and transparent dealings in the Namibian credit landscape,” the association said. “The proposed CCB in Namibia presents a robust framework for safeguarding consumer rights and regulating credit practices,” it added. The adoption of the Bill would also offer protection against unsavoury lending practices, the association said. “The CCB’s emphasis on confidentiality, the right to challenge adverse reports, and the prohibition of unlawful credit agreements underscores a commitment to protecting consumers from potential abuses. By curbing excessive charges and regulating interest rates, the legislation promotes equitable pricing structures and guards against predatory lending practices,” it said. The Bill would also address vulnerabilities in micro-lending transactions, ensuring consumers are empowered, the association said. “Crucially, the CCB acknowledges the vulnerabilities in micro-lending transactions, instituting a cooling-off period and empowering consumers with the right to terminate agreements within a specific timeframe. The provisions related to debt enforcement strike a delicate balance, encouraging communication and resolution before resorting to legal action,” the association said. The association called for thorough drafting of the CCB. “The successful implementation of this legislation hinges on the subsequent drafting of regulations and standards. These complementary components must be developed with precision, addressing operational intricacies to ensure the effective execution of the CCB,” the association said. The association encouraged increased education on aspects of credit to enhance the effectiveness of the Bill, once promulgated. “This should be paired with increased financial literacy and consumer education. The effectiveness of the CCB will depend significantly on consumers being aware of their rights and responsibilities,” the association said. Increased consumer education initiatives would assist in ensuring the Bill meets its intended outcomes, the association said. “If there are insufficient efforts to educate consumers about the provisions of the CCB, they may not be able to fully exercise their rights or protect themselves from unfair practices. Addressing these concerns through continuous review, stakeholder engagement, and potential amendments to the CCB, can help strengthen its effectiveness in safeguarding consumers and promoting responsible credit practices in Namibia,” the association said.

Credit Consumer Bill welcomed

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Republikein 2025-04-02

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Credit Consumer Bill welcomed

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Republikein 2025-04-02

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