The Namibia Financial Institutions Supervisory Authority (NAMFISA) has issued a strong warning to the public, urging consumers to use only registered microlenders when accessing short-term credit and related financial services.
NAMFISA explained that engaging with unregistered lenders exposes consumers to unlawful practises, excessive charges, and loss of legal protection. The Microlending Act of Namibia was established to protect consumers by regulating lending practices and ensuring transparency, fairness, and accountability within the sector.
In accordance with the Act, microlenders must clearly disclose interest rates, fees, and repayment terms upfront, and charge interest fees within limits prescribed by the law. Microlending must also treat consumers fairly and refrain from abusive or deceptive practices, including retaining personal documents, bank cards, or pins as security.
NAMFISA encouraged consumers to verify the registration status of any microlender through its official website at www.namfisa.com.na, which maintains an up-to-date list of registered microlenders. The Authority also discourages borrowing from individuals or entities that cannot prove registration as well as those who pressure you into decisions or refuse to provide written agreements.
Victoria Raimond
Victoria Raimond, NAMFISA spokesperson, emphasised the importance of consumer vigilance, stating, “Borrowing from unregistered lenders can lead to high costs and limited legal recourse. The Microlending Act is in place to protect consumers and promote responsible lending practices. Always check the NAMFISA website for the latest list of registered lenders.”
The public is encouraged to remain vigilant and informed to protect themselves from financial exploitation. Members of the public who have been affected adversely by the conduct of a microlender, or who suspect unlawful lending practices, are encouraged to lodge a complaints at NAMFISA’s office in Windhoek. Consumers can also contact the Authority through its toll free number (0800 290 500) or by email at [email protected].
The Authority said it is committed to take appropriate regulatory action to enforce compliance with the Microlending Act.