📌 Introduction
Namibia’s long-awaited Consumer Credit Bill (CCB) is finally here. Marketed as a modern framework to regulate lending and protect consumers, the Bill has sparked heated debate. While it introduces stronger oversight of debt collectors and tighter rules on credit agreements, it has removed two critical safeguards: debt counselling and prescription.
These omissions could reshape the financial landscape for ordinary Namibians—especially those already struggling with debt.
⚖️ What Changed?
Debt Counselling Removed:
Previous drafts included mechanisms for debt counselling, similar to South Africa’s National Credit Act. Counselling offered structured repayment plans and protection against reckless lending. Its removal means consumers now face creditors without formal mediation or rehabilitation pathways.
🔍 Why It Matters
- For Consumers:
No structured relief for over-indebted households.
Risk of perpetual debt cycles, with no legal “expiry date.”
Increased vulnerability to aggressive debt collection practices.
- For Lenders:
Greater power to enforce repayment indefinitely.
Reduced incentive to lend responsibly, since debts never expire.
- For Namibia’s Economy:
Short-term: stronger creditor confidence.
Long-term: potential rise in poverty, reduced consumer spending, and weakened trust in financial institutions.
🗣️ Commentary
The removal of debt counselling and prescription is a step backward for consumer rights. While the Bill strengthens regulation of debt collectors, it leaves ordinary Namibians exposed to lifelong debt obligations without formal support systems.
Advocates argue that Namibia should align with international best practices, where debt counselling and prescription are seen as essential to balancing fairness in credit markets. Without them, the risk is clear: credit becomes a trap, not a tool for empowerment.
✍️ Closing Thought
This Bill is more than a technical reform—it’s a statement about whose interests matter most in Namibia’s financial system. As the debate unfolds, the question remains: Will Namibia protect its consumers, or leave them to face creditors alone?
