An Investigation Into The Need For Consumer Protection In The Financial Sector In Namibia

ABSTRACT  

This thesis investigates the need to strengthen consumer protection in the financial sector in Namibia. The necessity to intensify consumer protection in the financial sector has been necessitated by numerous complaints by consumers against unfair and deceptive practices by financial institutions. Namibia currently does not have national comprehensive consumer protection legislation nor does it have a single legislation regulating the relationship between consumers and financial institutions. The study was conducted through analysis of relevant materials such as books, journal articles, newspaper reports, websites, pieces of legislation and case law. The researcher also conducted interviews, using semi-structured questionnaire, with consumers and officials of financial regulators to obtain empirical understanding of the need for strengthening consumer protection in the financial sector. The research revealed that consumer protection framework in the financial sector is ineffective in the sense that the regulators do not have adequate powers to institute sanctions against financial institutions that are treating consumers unfairly and disregarding consumer rights. The research also reveals that consumers lack knowledge on financial products which makes it difficult for them to make informed choices on suitable financial products. The research recommends that a Financial Services Adjudicator should be established whose function will be to resolve complaints lodged by consumers against financial institutions. Further, the study recommended that the mandates of financial regulators regarding consumer protection should be clearly explained, and that their powers should be strengthened to take firm actions against financial institutions that contravene the laws by treating consumers unfairly. Finally, the study called for the strengthening of consumer education in order to ensure that consumers are empowered to make informed choices with regard to financial products and services.