The Namibia Financial Institutions Supervisory Authority (NAMFISA) is set to regulate debt collectors through its upcoming Consumer Credit Bill.
NAMFISA Chief Executive Officer Kenneth Matomola said the Bill aims to enhance oversight and regulation within Namibia’s consumer credit sector.
“Currently, debt collectors do not fall under our mandate, but with the Consumer Credit Bill, they will be regulated institutions in the future,” he explained.
The Bill, which is currently in the drafting stage, has made significant progress with a draft set for submission to the Minister of Finance and Public Enterprises by year-end.
“We will dedicate this year to reviewing all the comments received from the public. Once reviewed, we aim to provide the Minister with the draft bill for his consideration by the end of the financial year,” he said.
The Consumer Credit Bill currently being drafted, aims to regulate and supervise the consumer credit sector in Namibia.
“The Bill applies to all credit agreements between parties dealing at arm’s length and made or having an effect within Namibia, except where the consumer is a large juristic person whose asset value or annual turnover equals or exceeds the threshold value determined by the Minister of Finance; the consumer is a public body; or the credit provider is the Bank of Namibia,” said NAMFISA.
Additionally, the Bill does not apply if the principal office of the credit provider is located outside Namibia, the Authority explained.
Similarly, the regulator said the Bill doesn’t apply in certain situations where the credit is given between people or companies who have a close relationship.
“The Bill does not apply where the credit is extended between parties who are not dealing at arm’s length, for example, shareholder loans; parties in a familial relationship where codependency is a factor,” said NAMFISA.
Furthermore, when parties are in an employee-employer relationship where the extension of the credit does not fall within the employer’s ordinary course of business; or parties are not independent of each other and do not necessarily strive to obtain the utmost possible advantage out of the transaction.
