The Communications Regulatory Authority of Namibia must be applauded for the decision on a consumer complaint about the 18% collection commission that Mobile Telecommunications Limited (“MTC”) charges on outstanding debts. (The complaint was received in 2013.)
The following is taken directly from the Media Statement published on 16 February 2018:
MTC’s Subscriber Agreement states that if the subscriber breaches the contract, MTC shall be entitled to recover all legal and other costs which shall include 18% collection commission that may be legally recovered from the subscriber by MTC.
The Authority concluded and resolved as follows:
- MTC may not charge consumers a collection commission of 18% on any debts emanating from service level agreements for the provision of telecommunication services;
- All debts arising from subscriber agreements between consumers and MTC are to be charged a collection commission of 10% only in line with the Magistrate’s Court Rule; and
- The Magistrate Court Rules are aimed at ensuring that tariffs that have a bearing on collection of debts are reasonable, fair and equitable. The charges by the debt collectors are not exempt from the Magistrate Court Rules.
Aggrieved and affected consumers are encouraged to manage their cases directly with MTC. If such consumers feel their cases have not been addressed within 14 days from the date in which it was formally reported to MTC, then they should follow CRAN’s consumer complaint procedures.
This means that all consumers who have been charged the amount of 18% on outstanding debts can now insist on being refunded these fees.
We applaud the decision by CRAN and hope that MTC will put in place a method that will return these unfairly charged fees – and the interest they (MTC) might have received on these monies.
