The Namibia Financial Institutions Supervisory Authority (NAMFISA) recovered a total of N$1,731,404 for consumers who lodged complaints with the Authority against non-banking financial institutions between January and March this year.
The total amount paid to complainants as a result of NAMFISA’s intervention increased slightly by N$7,486 to N$1,731,404 during the quarter first quarter, compared to N$1,723,918 in the previous quarter.
According to the Authority, the majority of the amount was recovered from the short-term insurance industry, with N$1,057,073, followed by N$465,052 from the long-term insurance industry, N$161,375 from the pension funds industry, and N$47,904 from the microlending industry.
Meanwhile, main issues consisted delays in paying pension benefits, rejected funeral claims, failure to cancel contracts, and delays in death benefits and refund payments.
The Authority explained that during the resolution of complaints, conduct issues and root causes in complaints are identified to determine or influence focus areas for consumer education and supervisory activities. NAMFISA further engages regulated entities regularly during industry forums to encourage timely and amicable resolutions of complaints.
Kenneth Matomola, NAMFISA Chief Executive underscored that consumer protection remains a priority of the Authority’s mandate. He said the Authority will continue encouraging consumers to assert their rights and make use of the complaints mechanisms available to them.
To enhance consumer protection, NAMFISA has therefore established a dedicated Consumer Complaints Department that investigates complaints on behalf of consumers of non-bank financial services and products at no cost to the consumer.
They are advised to first lodge the complaint in writing with the concerned financial institution and to ensure they receive written feedback from the targeted financial institution.
The Authority advised prospective complainers to keep copies of all correspondence with the financial institution, as well as records such as names, dates and contract detail. Submitting this information when lodging a complaint makes the investigation easier and faster to conclude.
