Namfisa records decrease in consumer complaints

Consumer complaints lodged with the Namibia Financial Institutions Supervisory Authority (Namfisa) decreased from 1 072 recorded in 2018 to 1 013 recorded in 2019, the authority’s 2020 annual report shows.
The report, which was launched on Wednesday, said the authority attributes the lower number of complaints received to its awareness campaigns, which focused on encouraging consumers to approach entities first.
“The authority continued with its efforts to ensure that consumers are protected by sensitising and educating them about Namfisa’s complaint recourse mechanisms. In this regard, the authority saw an increased type of channel used by clients to lodge complaints, such as via fax or by personal walk-in contact,” the report reads.
During 2019, 358 complaints were lodged against micro-lending industries compared to 400 in 2018, 303 in 2019 compared to 326 involving long-term insurance, while 188 complaints were received against short-term insurance compared to 151 recorded in 2018.
According to the report, a total of 148 complaints were received against pension funds in 2019, while 178 were received in 2018. Complaints received against medical aid funds were 14 in 2019 compared to 13 the preceding year, while complaints lodged against capital markets in 2019 were only two, compared to three in 2018.
“The authority was able to resolve 92.7 per cent of the 1 013 complaints received. The remaining 7.3 per cent were pending as at 21 December 2019 and were therefore carried over to the following financial year. The top four industries, micro-lending and credit agreements, long term insurance, short-term insurance and pension funds, aggregately constituted for 98. 4 per cent of all complaints lodged during the reporting financial period,” the report said.
Across all industries, the main reason for some complaints were recurring as consumers signed blank or incomplete documents, consumers did not understand a specific financial benefit or product offered because of insufficient, inappropriate or no explanations given when it was sold, it added.
Source: Namibia Press Agency