NAMFISA orders N$2.2 mln back to consumers

The Namibian Financial Institutions Supervisory Authority (NAMFISA) has ordered over N$2.2 million back into consumers’ pockets.

NAMFISA received various complaints from consumers of financial services during the period January 2023 to March 2023. The complaints were mainly against the long-term and short-term insurance industry, pension funds industry and micro-lending and credit agreements industry.

Most of the complaints were resolved amicably. The complaints were largely attributed to the delays in the non-payment of pension benefit claims, repudiation of funeral claims, non-cancellation of contracts, and delays in payment of death and refunds.

The total amount paid to complainants owing to the Authority’s intervention increased significantly by N$1 769 633 to N$2 237 163 during the quarter ended 31 March 2023. The highest amount totalling N$1 422 369.74 was recovered from the pension funds industry, followed by N$742 558.00 from the long-term insurance industry, N$62 089.67 from the short-term insurance industry, N$10 145.32 from the microlending industry and credit agreement industry.

During the resolution of complaints, the Authority identifies conduct issues and root causes in complaints which are used to determine or influence focus areas for consumer education and supervisory activities. NAMFISA further engages regulated entities regularly during industry forums to encourage timely and amicable resolutions of complaints.

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

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