In Namibia, the Consumer Law can
do a lot to prevent the endless circle of debt and poverty consumers get
trapped in. Take for example the principle of in duplum.
“In duplum” is a Latin phrase
derived from the word in duplo which means "in double". The rule has
its origin in the Roman Dutch law. It basically provides that interest stops
running when unpaid interest equals the outstanding capital amount.
It has always been considered
illegal (and immoral) to charge interest which is more than the original amount
owed, except in special circumstances but people such as banks, lawyers, debt collectors,
etc get away with it because it is a common law rule. This means there is uncertainty
when applying the rule, especially by the courts.
Thus a creditor should not charge
more than twice the original amount due - but lawyers charges, tracing fees, administrative
costs, etc. can inflate the debt to almost any amount?
This common law "in
duplum" rule has been codified by statute in South Africa, which now
protects consumers against predatory interest rates on loans and further
provides better clarity about when the rule applies and when not.
Namibia needs legal protection
for its consumers – the Consumer law is a necessity not a nicety!
