Bank charges ‘a rip-off’

THE service rates charged by commercial banks in Namibia were far too high and customers were always at the losing end, especially ordinary people from a previously disadvantaged background, members of the public alleged during a parliamentary hearing last Friday.

The Parliamentary Standing Committee on Economics, Natural Resources and Public Administration invited citizens to air their views on the matter after the issue was debated in the National Assembly recently, following a motion by Kalla Gertze of the Congress of Democrats (CoD). A rights group said it suspected that banks had a code system regarding previously disadvantaged clients “so that Police can get hold of criminals quicker”.Michael Gaweseb of the Namibia Consumers Association (NCA) said “they have a racial coding system in place.”People also refrained from drawing cash at automated teller machines (ATMs) because they get robbed there, he said.”Although ATMs have lower bank charges, people now again draw money over the counter at banks where higher bank fees must be paid,” Gaweseb complained.”We want to keep our dignity; bank officials should be friendly to clients, not laugh or shout at us,” Gaweseb told the committee chaired by Dr Hage Geingob.”If a shop is expensive, one can buy at another one,” according to Gaweseb, “but to which bank can one go? They all charge high rates and it is very difficult to change banks,” he complained.The president of the NCA said his organisation was suspicious of a “cartel” since all four commercial banks in the country had similarly high interest rates.Businessperson Milton Louw requested the committee to investigate the blacklisting of bank clients who were alleged not to be creditworthy.”Banks tell clients who ask for credit that they would not get it, but do not inform them why they are blacklisted,” he told the committee.The parliamentary committee will also invite commercial banks to hear their views on the issue.A rights group said it suspected that banks had a code system regarding previously disadvantaged clients “so that Police can get hold of criminals quicker”.Michael Gaweseb of the Namibia Consumers Association (NCA) said “they have a racial coding system in place.”People also refrained from drawing cash at automated teller machines (ATMs) because they get robbed there, he said.”Although ATMs have lower bank charges, people now again draw money over the counter at banks where higher bank fees must be paid,” Gaweseb complained.”We want to keep our dignity; bank officials should be friendly to clients, not laugh or shout at us,” Gaweseb told the committee chaired by Dr Hage Geingob.”If a shop is expensive, one can buy at another one,” according to Gaweseb, “but to which bank can one go? They all charge high rates and it is very difficult to change banks,” he complained.The president of the NCA said his organisation was suspicious of a “cartel” since all four commercial banks in the country had similarly high interest rates.Businessperson Milton Louw requested the committee to investigate the blacklisting of bank clients who were alleged not to be creditworthy.”Banks tell clients who ask for credit that they would not get it, but do not inform them why they are blacklisted,” he told the committee.The parliamentary committee will also invite commercial banks to hear their views on the issue.