Namfisa urges public to report illegal microlending practices

The Namibia Financial Institutions Supervisory Authority(Namfisa) has cautioned the public against unregistered microlenders who continue to engage in illegal practices such as confiscating clients’ identity documents.

Speaking at the Ongwediva Annual Trade Fair, Junias Erasmus, a consumer education specialist at Namfisa, recently said the institution has received several complaints from consumers who visited its stall.

“The major concern relates to unregistered lenders taking personal documents such as national identity cards, drivers’ licences and bank PIN numbers, a practice strictly prohibited under the Micro-lending Act of Namibia,” he said.

Erasmus said no microlender legally registered with Namfisa is permitted to take personal documents from clients.

“Unfortunately, most of these cases are traced back to unregistered lenders operating outside the law,” he said, stressing that the authority wants people to come forward and report those violating the law through these practices for them to be dealt with.

Erasmus highlighted the importance of consumer education, noting that the trade fair provides an ideal platform to raise awareness.

Through these interactions, Namfisa is teaching people about their financial rights and responsibilities, while also offering guidance on how to handle grievances, he said.

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