Shivute encourages consumers to know their rights

The Oshikoto regional council chairperson, Samuel Shivute, is encouraging people to know their rights and stop taking unaffordable debt that can result in them experiencing financial distress.

Shivute said at the Oshikoto regional consumer credit bill consultations held at Omuthiya on Thursday that many people find themselves burdened by expensive loans and insurance over the years due to a lack of information on how loans and insurance work.

He further stated that many consumers in Namibia do not know where to go when their rights are infringed upon and they often feel helpless.

“We should know that we are the reason for the existence of businesses, hence we should know our rights to act accordingly,” said Shivute.

He said the bill aims to educate about making the right financial decisions at the right time with the correct information.

Corporate communications practitioner of the Namibia Financial Institutions Supervisory Authority (NAMFISA) Joanette Eises, said the purpose of the bill is to promote fair, transparent and responsible market conduct in the consumer credit market where consumers of credit are protected by ensuring that there is fair treatment of consumers.

Eises said the bill will apply to all types of credit, whether it is a loan for educational purposes or credit extended for the development of a small business, or low-income housing.

“There is transparency and full disclosure of information and improved reporting of consumer credit information; regulation and supervision of services provided by credit providers, credit bureaus and debt collectors, promoting the highest standards of conduct of business; and reduction and deterrence of financial crimes,” said Aises.

She also said the proposed bill would bring many rights to consumers while every right comes with a corresponding duty.

“Some of the more important rights conferred on consumers are the right to receive reasons for credit being refused, the right to information in plain language, the right to receive documents, the right of refusal to sign blank or incomplete documents, the prohibition against retention of identified documents, bank cards and PINs, the opportunity to read and to receive explanations of the terms and conditions of the credit agreement, right to confidential treatment,” said Eises.

NAMFISA is leading a project alongside representatives from the Ministry of Finance and Public Enterprises, the Bank of Namibia, the Ministry of Industrialisation and Trade, and the Financial Literacy Initiative to address legislative challenges in the form of the Consumer Credit Bill.

(NAMPA)
TG/PS/EK
(NAMPA)