After receiving complaints from financial services clients between January 2023 and March 2023, the Namibian Financial Institutions Supervisory Authority (Namfisa) ordered that over N.dollars 2.2 million be restored to their accounts.
The accusations were mostly directed against the long-term and short-term insurance industries, as well as the pension funds and micro-lending and credit agreements industries.
The majority of the complaints were settled peacefully, Namfisa Chief Executive Officer, Kenneth Matomola said in a press release on Tuesday.
He said the complaints were primarily due to delays in the non-payment of pension benefit claims, repudiation of funeral claims, non-cancellation of contracts, and delays in payment of death and refunds.
“The total amount paid to complainants owing to Namfisa’s intervention increased significantly by N.dollars 1 769 633 to N.dollars 2 237 163 during the quarter ended 31 March 2023. The highest amount totalling N.dollars 1 422 369.74 was recovered from the pension funds industry, followed by N.dollars 742 558 from the long-term insurance industry, N.dollars 62 089.67 from the short-term insurance industry, N.dollars 10 145.32 from the micro-lending industry and credit agreement industry,” he said.
Matomola noted that the regulatory authority finds conduct concerns and root reasons in complaints throughout the settlement process, which are then used to identify or influence focal areas for consumer education and supervisory actions. Namfisa also contacts regulated entities at industry events to facilitate amicable resolution of grievances.
“Consumer protection is key to our operations, and therefore I encourage consumers to know their rights and responsibilities as users of financial service products,” he said.
He added that Namfisa has 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.
An aggrieved consumer can lodge a complaint against non-bank financial institutions or financial intermediaries (registered and doing business in Namibia) with Namfisa.
Source: The Namibian Press Agency