Thursday, 23 September 2010

A consumer law in Namibia should protect people who are renting

A Namibian Consumer Protection Act should specifically target unfair discrimination and enforce the right of equality in the consumer market. The Act must put the onus on the landlord to prove that he is not discriminating in any way against a tenant on the basis of things like race, gender, nationality, and even income.

In addition, we believe the new Act should allow for automatic renewal of the rental agreement. This will prevent landlords from using this as an excuse to terminate when the tenant wishes to stay. At present many agents and landlords are using the end of the year contract to get rid of tenants so they can increase the rent amount for the next person. Normally the rent will only go up by around ten percent, and the landlords are pushing up the prices to the new tenants by a lot more.

Lastly, we propose that the Consumer protection Act must include the right to fair and honest dealings. “No physical force, coercion, undue influence, pressure, duress or harassment may be employed to evict a tenant or compel them to sign a lease."

As an example, I quote from personal experience.

Last year, I was a renting near to the Zoo Park in Windhoek. I was on the farm at the time and had made arrangements as to my monthly payment. As agreed, I came from the farm and paid my outstanding rent and prepaid for two months.

The owner in the meantime decided to cancel the lease agreement with all tenants and change the building into office space. They thus gave all tenants two months notice to leave. I had paid a deposit so knew that I still had sufficient funds with the agent till the end of the period.

But the renting company wanted to get rid of all the tenants and make sure they were gone. So the estate agent "forgot" to enter my late payment and had their lawyers prepare a judgement. As you can imagine, I was very shocked to have the Sheriff of the Court appear at my door to throw me out. The worst part is that the Sheriff took my furniture even though the outstanding amount on the account had been paid.

Of course, there was nothing I could do. The lawyer for the company was also a Director of the same company and would not listen to any explanation.

Once the sheriff had sold my furniture, the lawyer had the audacity to let me know there was a shortfall on the outstanding account.

I called the lawyer and estate agent and explained that they were using a wrong account and the estate agent still owed me my deposit - which was more than any outstanding amount.

They promised to come back to me. Yeah right, almost a year later and still no response.

So what can you do before the law is in place?

You should write down the events that took place and make copies of all correspondence between yourself and the landlord. Once you have completed a written explanation, send this to the Estate Agents Board of Namibia. This is a statutory body under the Ministry of Trade and Industry responsible for making sure these landlords and estate agents comply with the law.

Now you might wonder why I did not follow this advice. The Sheriff of the Court under instructions of the agent had taken all my furniture including my computer equipment, thrown all my belongings on to the street. Poof, all my documentation and proofs of payment were gone.

Interview with Milton Louw on the above issues:
1. Does Namibia have a Consumer Protection Act?
No. However, the Namibian consumer is protected by various other laws, mostly industry specific such as in banking, insurance, medical, etc.

2. Is there plans to table such a law in parliament?
The Ministry of Trade and Industry has been talking to various role-players such as business, statutory bodies, consumer groups, etc on what form the law should take. Their "primary considerations were that Namibian consumers were experiencing unscrupulous and unfair trading practices, and that existing avenues to obtain redress are inadequate or completely absent." A workshop on this topic was held in September 2009 and the Ministry of Justice was requested to prepare a draft law. We have not had any more feedback since March this year.

3. What are the issues you would like to be put into the law? You referred in your email newsletter and on the Internet to issues with people hiring house and flats?
A Namibian Consumer Protection Act should specifically target unfair discrimination and enforce the right of equality in the consumer market. The Act must put the onus on the landlord to prove that he is not discriminating in any way against a tenant on the basis of things like race, gender, nationality, and even income.

4. How will this affect the complaints about high rentals in Namibia
We believe amongst others that the new Act should allow for automatic renewal of the rental agreement. This will prevent landlords from using this as an excuse to terminate when the tenant wishes to stay. At present many agents and landlords are using the end of the year contract to get rid of tenants so they can increase the rent amount for the next person. Normally the rent will only go up by around ten percent, and the landlords are pushing up the prices to the new tenants by a lot more.

5. What about landlords or estate agents throwing out people on to the street
we propose that the Consumer protection Act must include the right to fair and honest dealings. “No physical force, coercion, undue influence, pressure, duress or harassment may be employed to evict a tenant or compel them to sign a lease."

6. What can a consumer do if they feel unfairly treated by an estate agent?
The Estate Agents Board is under the Ministry of Trade and Industry with the mandate to regulate and control certain activities of estate agents in the public interest. They can be contacted about any complaint and they have specific procedures to deal with complaints.