Windhoek: The Namibia Financial Institutions Supervisory Authority (Namfisa) has raised concern over fraudulent and unethical practices by some microlenders, demanding personal documents or sensitive banking information from clients.

According to Namibia Press Agency, in an interview with Nampa at the Ongwediva Annual Trade Fair, Namfisa Consumer Education Specialist, Junias Erasmus, said the regulator has identified a growing number of complaints involving consumers who sign blank or partially completed documents when applying for loans.

Erasmus stated that this practice exposes consumers to abuse and complicates the regulator's efforts to successfully resolve disputes once complaints are lodged. "We have observed that many consumers are signing blank contracts or partially blank documents because they are desperate for money. Consumers should only sign documents when they fully understand and agree with the contents," he advised.

He mentioned that consumers have been approaching Namfisa's mobile office with complaints against various financial service providers, prompting the authority to intensify its consumer education efforts. Erasmus further emphasized that no microlender is permitted to request or retain personal documents. "The law is very clear; no microlender in Namibia should ask for a consumer's bank PIN number or personal documents and if such information is requested, consumers must report it to Namfisa so that appropriate action can be taken," said Erasmus.

Erasmus explained that the regulator is concerned that some consumers unknowingly expose themselves to financial exploitation by surrendering personal information and signing documents without reviewing the terms and conditions. The authority has also been distributing educational materials and providing guidance on complaint procedures, consumer protection, and financial literacy.

He encouraged members of the public to visit Namfisa's mobile office at the trade fair and report suspected irregularities to help protect consumers from fraudulent practices in the financial sector. Erasmus noted that Namfisa is using the trade fair platform to educate residents from the northern regions on their rights and responsibilities when dealing with financial institutions.