Nearly N$2 million ordered back to consumers

PHILLEPUS UUSIKU

During the third quarter of 2021, The Namibia Financial Institutions Supervisory Authority (NAMFISA), which is the regulator of Non-Banking Financial Institutions (NBFI), ordered over N$1.8 back to customers’ pockets.

During the period under review, the regulator received a total of 213 complaints from consumers of financial services and this signifies an increase of 34% in comparison to the previous quarter while this is a reduction of 18.4% on annual basis.

According to NAMFISA’s spokesperson, Victoria Muranda, of all the complaints received, 98.6% mainly originated from micro-lending and credit agreements, long-term insurance, short-term insurance, and the retirement funds sectors.

About 77% of the total complaints received were resolved amicably. The resolution of complaints resulted in consumers receiving well over N$1.8 million from Non-Banking Financial Institutions (NBFI).

Retirement funds, short-term insurance, and long-term insurance sectors accounted for about 97% of that total amount, she pointed out.

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.

As per its vision, NAMFISA continues to ensure that consumers are protected.

NAMFISA has a dedicated complaints department that investigates complaints on behalf of consumers of non-bank financial services and products at no cost to the customers. Generally, complaints range from extensions of repayment periods without consumers’ consents, repudiations of insurance claims, non-payment of pension benefits, excessive interest charges, illegal deductions and non-cancellations of contracts, Muranda said.

Steps

If a consumer feels aggrieved, they can launch complaint about a non-bank financial institution registered and doing business in Namibia with NAMFISA. It is important to note that, NAMFISA only has jurisdiction over institutions registered with it and doing business in Namibia, she added.

“It is therefore important to ensure that you only do business with registered entities. You can contact NAMFISA or visit our website with the details of the business to find out whether it is registered or not,” Muranda said.

Firstly, when launching a complaint with NAMFISA, consumers should ensure that they have a valid complaint by checking with the NAMFISA complaints department on 061 290 5134 or emailing [email protected].

Secondly, consumers are required to first launch their complaint in writing with the financial institution concerned. If the complaint is not resolved, the regulator can then be contacted.

In addition, consumers are urged to keep copies of all relevant documentation to send with the complaint and for record purposes. Do not send original documents unless you are required to do so, Muranda emphasised.

Moreover, record names, dates, contact details, and important information. This makes the investigation easier and faster to conclude.

Lastly, “if you launch your complaint via telephone, always follow up the call with a letter. Stay calm even if the financial institution is displeased. Back up your claim in writing as far as possible,” she [email protected]