Chaos over card fees
Inconsistencies and high charges have prompted a Nust SRC probe into the NAM-MIC student cards at the university.
The Namibia Science and Technology (Nust) Student Representative Council (SRC) is accusing the Namibia Students Financial Assistance Fund (NSFAF) through its partnership Namibia Financial Solutions (NFS) NAM-MIC card of exorbitant withdrawal fees and inconsistent charges after students made complaints to the SRC at the university.
Using a sample of 13 students’ NAM-MIC bank statements to investigate bank withdrawal charges the SRC discovered that there were inconsistencies in the charges on the card.
Nust SRC President Oscar Mwandingi says they have discovered that NAM-MIC bank charges towards students are erratic. “We discovered that the withdrawal fees for ATMS are not consistent and students are charged different amounts for the same withdrawals,” said Mwandingi. Citing a spreadsheet document sent to Namfisa, the SRC learned that NAM-MIC was charging students very high fees. A NAM-MIC booklet which explains bank charges for withdrawals shows that it charges 1.5% of the amount with a minimum of N$4.60 and maximum of N$27 at Bank Windhoek ATMs. The booklet further shows that NAM-MIC charges 75 cents with a minimum of N$2.50 and a maximum of N$25 at participating NAM-MIC merchants.
Mwandingi also claimed that a student’s account was used without her knowledge to buy airtime while the said student’s account had reached its monthly withdrawal limit.
Two students who withdrew N$3 000 were charged two different fees for the same withdrawal; one student was charged N$27 while another was charged N$29. A student who withdrew N$1 900 was charged N$29 while two students who each withdrew N$2 000 were both charged N$27 and N$29 respectively. The inquiry conducted by the SRC also shows that two students who each withdrew N$100 were charged N$4 and N$5.
However changes to the fees were published in the booklet and NAM-MIC increased their withdrawal fees on 1 July 2016, valid until 30 June this year. Withdrawals at participating NAM-MIC merchants are now 0.9% of the amount with a minimum cost of N$2.75 and a maximum of N$25. For withdrawals at Bank Windhoek ATMs the cost is 1.8% of the amount with a minimum fee of N$5.50 and a maximum N$ 29.50.
Mwandingi says that students were told. “Students were not made aware of those prices, how can they just increase prices without telling students?” he said. The interim operations manager of NAM-MIC, Joseph Nitzborn says that students were made aware of the fee increase through promotions conducted by NAM-MIC at Nust and on social media. “Every year when we do promotions at the university we give them brochures and we also advertise on our Facebook page and it says fees are subject to change in our booklets,” said Nitzborn. Mwandingi said that although charges are up, it does not explain the other inconsistencies.
“That is still valid, their charges are still inconsistent. I think the reason why they told you about the changes in the booklet is because they have exceeded the maximum charge which is N$27,” said Mwandingi.
Mwandingi says the SRC decided to launch an investigation after many students started complaining about ‘unfair’ bank charges.
Mwandingi says they will give Namfisa and NSFAF two weeks to look into the issue of the bank charges and if they do not respond they will return or “burn” the NAM-MIC cards. “We don’t think we are going to wait for them to finish their investigations. We give them two weeks for the investigation and if by the beginning of next month they don’t get back to us we are going to return the cards,” said Mwandingi.
Nitzborn has denied that NAM-MIC overcharges students stating that they cannot verify claims made by the SRC president. “We take note of the analysis provided, but with no dates provided we cannot be sure if the charges mentioned is in the same year and if it may differ due to increases in fees, that came into effect on 1 July 2016. It is also difficult to use the analysis provided as it is not linked to specific NAM-MIC account statements and can therefore not be verified.”
Nitzborn also denied that NAM-MIC withdrew money from a card holder’s account. “We would like to emphasise that student accounts are very safe and a secure way of banking. It is not possible for anyone to transact on another person’s account,” said Nitzborn.
Nitzborn said that it is impossible for them to access a card holders account because students use their own PIN to access their accounts making it hard for anyone to use their account. “Cards and mobile channels are PIN based, with only the account holder knowing what his or her PIN is and no PINs are store or can be looked up later. A student can however request a new PIN via an access change request form. PINs are only reset for walk-in customers with positive identification. NAM-MIC can confidently assure our customers that no one can transact on their accounts without their consent,” said Nitzborn
Shona Ngava
Using a sample of 13 students’ NAM-MIC bank statements to investigate bank withdrawal charges the SRC discovered that there were inconsistencies in the charges on the card.
Nust SRC President Oscar Mwandingi says they have discovered that NAM-MIC bank charges towards students are erratic. “We discovered that the withdrawal fees for ATMS are not consistent and students are charged different amounts for the same withdrawals,” said Mwandingi. Citing a spreadsheet document sent to Namfisa, the SRC learned that NAM-MIC was charging students very high fees. A NAM-MIC booklet which explains bank charges for withdrawals shows that it charges 1.5% of the amount with a minimum of N$4.60 and maximum of N$27 at Bank Windhoek ATMs. The booklet further shows that NAM-MIC charges 75 cents with a minimum of N$2.50 and a maximum of N$25 at participating NAM-MIC merchants.
Mwandingi also claimed that a student’s account was used without her knowledge to buy airtime while the said student’s account had reached its monthly withdrawal limit.
Two students who withdrew N$3 000 were charged two different fees for the same withdrawal; one student was charged N$27 while another was charged N$29. A student who withdrew N$1 900 was charged N$29 while two students who each withdrew N$2 000 were both charged N$27 and N$29 respectively. The inquiry conducted by the SRC also shows that two students who each withdrew N$100 were charged N$4 and N$5.
However changes to the fees were published in the booklet and NAM-MIC increased their withdrawal fees on 1 July 2016, valid until 30 June this year. Withdrawals at participating NAM-MIC merchants are now 0.9% of the amount with a minimum cost of N$2.75 and a maximum of N$25. For withdrawals at Bank Windhoek ATMs the cost is 1.8% of the amount with a minimum fee of N$5.50 and a maximum N$ 29.50.
Mwandingi says that students were told. “Students were not made aware of those prices, how can they just increase prices without telling students?” he said. The interim operations manager of NAM-MIC, Joseph Nitzborn says that students were made aware of the fee increase through promotions conducted by NAM-MIC at Nust and on social media. “Every year when we do promotions at the university we give them brochures and we also advertise on our Facebook page and it says fees are subject to change in our booklets,” said Nitzborn. Mwandingi said that although charges are up, it does not explain the other inconsistencies.
“That is still valid, their charges are still inconsistent. I think the reason why they told you about the changes in the booklet is because they have exceeded the maximum charge which is N$27,” said Mwandingi.
Mwandingi says the SRC decided to launch an investigation after many students started complaining about ‘unfair’ bank charges.
Mwandingi says they will give Namfisa and NSFAF two weeks to look into the issue of the bank charges and if they do not respond they will return or “burn” the NAM-MIC cards. “We don’t think we are going to wait for them to finish their investigations. We give them two weeks for the investigation and if by the beginning of next month they don’t get back to us we are going to return the cards,” said Mwandingi.
Nitzborn has denied that NAM-MIC overcharges students stating that they cannot verify claims made by the SRC president. “We take note of the analysis provided, but with no dates provided we cannot be sure if the charges mentioned is in the same year and if it may differ due to increases in fees, that came into effect on 1 July 2016. It is also difficult to use the analysis provided as it is not linked to specific NAM-MIC account statements and can therefore not be verified.”
Nitzborn also denied that NAM-MIC withdrew money from a card holder’s account. “We would like to emphasise that student accounts are very safe and a secure way of banking. It is not possible for anyone to transact on another person’s account,” said Nitzborn.
Nitzborn said that it is impossible for them to access a card holders account because students use their own PIN to access their accounts making it hard for anyone to use their account. “Cards and mobile channels are PIN based, with only the account holder knowing what his or her PIN is and no PINs are store or can be looked up later. A student can however request a new PIN via an access change request form. PINs are only reset for walk-in customers with positive identification. NAM-MIC can confidently assure our customers that no one can transact on their accounts without their consent,” said Nitzborn
Shona Ngava
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