Micro-lenders may not keep bank cards
The Namibia Financial Institutions' Supervisory Authority (Namfisa) has warned micro-lenders not to withhold customers' identity documents, bank cards and personal identification numbers (PINs) as guarantee of repayment.
Namfisa spokesperson Victoria Muranda says micro-lenders are not allowed to keep customers' ATM cards and PINs.
“Micro-lenders have been directed by the authority not to retain consumers' bank cards and PINs as this practice ... is illegal and prohibited,” she said.
Muranda reminded cash-loan companies to adhere to Government Notice 196 of 2004, which stipulates that the interest charged by micro-lenders may not be more than twice the average prime rate.
Namibia's prime rate is 10.75%, and Muranda said the maximum interest rate may not exceed 21.5%. She urged customers to inform the complaints department at the Namfisa head office in Windhoek of micro-lenders that do not adhere to the regulations.
Muranda said 277 registered micro-lenders are monitored by Namfisa. Fifty-five were deregistered in 2016 due to various factors such as non-compliance with registration conditions, dormancy and voluntary request.
She said during the third quarter of 2016, Namfisa statistics revealed that N$856 563 430 had been lent by micro-lenders in Namibia.
The owner of Pika Quickloan, Albert Georg Piechazwk, told Nampa on Monday that he was not aware of the practice of withholding borrowers' personal documents, cards and PINs.
“We do not keep clients' ID cards, neither bank pins, which is against the rules,” he said.
He said borrowers were required to provide their IDs, bank statements of the last three months and their latest payslip, which are copied and then handed back.
NAMPA
Namfisa spokesperson Victoria Muranda says micro-lenders are not allowed to keep customers' ATM cards and PINs.
“Micro-lenders have been directed by the authority not to retain consumers' bank cards and PINs as this practice ... is illegal and prohibited,” she said.
Muranda reminded cash-loan companies to adhere to Government Notice 196 of 2004, which stipulates that the interest charged by micro-lenders may not be more than twice the average prime rate.
Namibia's prime rate is 10.75%, and Muranda said the maximum interest rate may not exceed 21.5%. She urged customers to inform the complaints department at the Namfisa head office in Windhoek of micro-lenders that do not adhere to the regulations.
Muranda said 277 registered micro-lenders are monitored by Namfisa. Fifty-five were deregistered in 2016 due to various factors such as non-compliance with registration conditions, dormancy and voluntary request.
She said during the third quarter of 2016, Namfisa statistics revealed that N$856 563 430 had been lent by micro-lenders in Namibia.
The owner of Pika Quickloan, Albert Georg Piechazwk, told Nampa on Monday that he was not aware of the practice of withholding borrowers' personal documents, cards and PINs.
“We do not keep clients' ID cards, neither bank pins, which is against the rules,” he said.
He said borrowers were required to provide their IDs, bank statements of the last three months and their latest payslip, which are copied and then handed back.
NAMPA
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