𝐓𝐡𝐞 𝐍𝐚𝐦𝐢𝐛𝐢𝐚𝐧 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 𝐂𝐨𝐦𝐦𝐢𝐬𝐬𝐢𝐨𝐧 𝐡𝐚𝐬 𝐜𝐨𝐧𝐜𝐥𝐮𝐝𝐞𝐝 𝐢𝐭s 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐭𝐨 𝐢𝐧𝐭𝐞𝐫𝐛𝐚𝐧𝐤 𝐞𝐱𝐜𝐡𝐚𝐧𝐠𝐞 𝐟𝐞𝐞𝐬 - A Consumer Activist opinion

 I have attached below an explanation of the advantages and disadvantages when banks set their own interchange fees. As you can see, if they do it themselves, it benefits the banks. BUT, all the disadvantages are on the side of the merchants and the consumers.

As a consumer activist, I was pleased when PAN - Payments Association of Namibia took the step that made it easier to compare costs between banks. In the Namibian market, I am afraid that banks will disadvantage the poorer consumer, causing them to pay more.

If however, the PAN costs are made the maximum, we will all benefit from it since banks must compete but not go over a certain amount or percentage. in essence, it is about how regulations are applied to ensure fairness and competitiveness in the market.

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Interchange fees are charges paid by merchants to card issuers each time a debit or credit card is used to make a purchase. When banks set their own interchange fees, it can have a range of implications, leading to both advantages and disadvantages. Here are some key points to consider:

𝑨𝒅𝒗𝒂𝒏𝒕𝒂𝒈𝒆𝒔

1. 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑓𝑜𝑟 𝐵𝑎𝑛𝑘𝑠: By setting their own interchange fees, banks can tailor charges to maximize their revenue. This can be beneficial for their profitability, allowing them to potentially offer more services or better rates in other areas.

2. 𝐹𝑙𝑒𝑥𝑖𝑏𝑖𝑙𝑖𝑡𝑦 𝑖𝑛 𝑃𝑟𝑖𝑐𝑖𝑛𝑔: Banks can adjust fees based on the market, type of merchant, or the transaction type, which can lead to more tailored financial products and services. This flexibility allows banks to compete more effectively in different sectors or regions.

3. 𝐼𝑛𝑐𝑒𝑛𝑡𝑖𝑣𝑒 𝑓𝑜𝑟 𝐼𝑛𝑛𝑜𝑣𝑎𝑡𝑖𝑜𝑛: Higher interchange fees can provide banks with the funds to invest in new technologies, enhancing security features, and improving the overall payment infrastructure.

4. 𝐶𝑢𝑠𝑡𝑜𝑚𝑖𝑧𝑎𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑐 𝑀𝑎𝑟𝑘𝑒𝑡𝑠: Banks can set fees that reflect the actual costs and risks associated with different types of transactions or industries, which might not be possible with a one-size-fits-all fee structure.

𝑫𝒊𝒔𝒂𝒅𝒗𝒂𝒏𝒕𝒂𝒈𝒆𝒔

1. 𝐻𝑖𝑔ℎ𝑒𝑟 𝐶𝑜𝑠𝑡𝑠 𝑓𝑜𝑟 𝑀𝑒𝑟𝑐ℎ𝑎𝑛𝑡𝑠: If banks set high interchange fees, merchants may face increased costs, which are often passed on to consumers in the form of higher prices. This can affect competitiveness and consumer choice.

2. 𝐿𝑎𝑐𝑘 𝑜𝑓 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑𝑖𝑠𝑎𝑡𝑖𝑜𝑛: Different banks setting different fees can lead to a lack of standardisation, which might confuse merchants and consumers. It can also make it difficult for new entrants to compete if they are unable to negotiate similar rates.

3. 𝑃𝑜𝑡𝑒𝑛𝑡𝑖𝑎𝑙 𝑓𝑜𝑟 𝐴𝑛𝑡𝑖-𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑣𝑒 𝑃𝑟𝑎𝑐𝑡𝑖𝑐𝑒𝑠: Larger banks might have the leverage to set higher fees, which could disadvantage smaller banks and limit competition. This can lead to market distortions where larger banks dominate because of their ability to dictate more favourable terms.

4. 𝑅𝑒𝑔𝑢𝑙𝑎𝑡𝑜𝑟𝑦 𝑎𝑛𝑑 𝐶𝑜𝑚𝑝𝑙𝑖𝑎𝑛𝑐𝑒 𝑅𝑖𝑠𝑘𝑠: With each bank setting its own fees, the complexity of regulatory compliance increases. This might lead to potential legal challenges or penalties if banks are found to be setting unfairly high fees.

5. 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐼𝑚𝑝𝑎𝑐𝑡 𝑜𝑛 𝑆𝑚𝑎𝑙𝑙 𝐵𝑢𝑠𝑖𝑛𝑒𝑠𝑠𝑒𝑠: Higher fees can disproportionately impact small businesses, which may see a significant portion of their margins eroded by these costs, making it difficult for them to compete with larger businesses that can negotiate better terms.

The balance between these advantages and disadvantages can vary greatly depending on how banks approach the setting of their interchange fees and how regulations are applied to ensure fairness and competitiveness in the market.

𝐃𝐢𝐞 𝐍𝐚𝐦𝐢𝐛𝐢𝐞𝐬𝐞 𝐌𝐞𝐝𝐞𝐝𝐢𝐧𝐠𝐢𝐧𝐠𝐬𝐤𝐨𝐦𝐦𝐢𝐬𝐬𝐢𝐞 𝐡𝐞𝐭 𝐬𝐲 𝐨𝐧𝐝𝐞𝐫𝐬𝐨𝐞𝐤 𝐧𝐚 𝐢𝐧𝐭𝐞𝐫𝐛𝐚𝐧𝐤𝐟𝐨𝐨𝐢𝐞 𝐚𝐟𝐠𝐞𝐡𝐚𝐧𝐝𝐞𝐥

Ek heg hieronder 'n verduideliking aan oor die voordele en nadele wanneer banke hul eie interbankfooie bepaal. Soos jy kan sien, indien hulle dit self doen, is dit tot voordeel van die banke. MAAR, al die nadele is aan die kant van die handelaars en die verbruikers.

As 'n verbruikersaktivis was ek bly toe PAN - Payments Association of Namibia (Betalingsvereniging van Namibië) die stap geneem het wat dit makliker gemaak het om koste tussen banke te vergelyk. In die Namibiese mark is ek bang dat banke die armer verbruiker sal benadeel, wat hulle meer sal laat betaal.

Indien egter die PAN-koste as die maksimum gestel word, sal ons almal daarby baat vind aangesien banke moet meeding, maar nie oor 'n sekere bedrag of persentasie gaan nie. In wese gaan dit oor hoe regulasies toegepas word om regverdigheid en mededingendheid in die mark te verseker.

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Interbankfooie is fooie wat handelaars aan kaartuitreikers betaal elke keer as 'n debiet- of kredietkaart gebruik word om 'n aankoop te maak. Wanneer banke hul eie interbankfooie bepaal, kan dit 'n reeks implikasies hê wat lei tot beide voordele en nadele. Hier is 'n paar sleutelpunte om te oorweeg:

𝑽𝒐𝒐𝒓𝒅𝒆𝒍𝒆

1. 𝑉𝑒𝑟ℎ𝑜𝑜𝑔𝑑𝑒 𝐼𝑛𝑘𝑜𝑚𝑠𝑡𝑒 𝑣𝑖𝑟 𝐵𝑎𝑛𝑘𝑒: Deur hul eie interbankfooie te bepaal, kan banke heffings aanpas om hul inkomste te maksimeer. Dit kan voordelig wees vir hul winsgewendheid, wat hulle toelaat om potensieel meer dienste of beter tariewe in ander areas aan te bied.

2. 𝐵𝑢𝑖𝑔𝑠𝑎𝑎𝑚ℎ𝑒𝑖𝑑 𝑖𝑛 𝑃𝑟𝑦𝑠𝑠𝑡𝑒𝑙𝑙𝑖𝑛𝑔: Banke kan fooie aanpas gebaseer op die mark, tipe handelaar, of die transaksie tipe, wat kan lei tot meer toegespitste finansiële produkte en dienste. Hierdie buigsaamheid laat banke toe om meer effektief mee te ding in verskillende sektore of streke.

3. 𝐴𝑎𝑛𝑠𝑝𝑜𝑟𝑖𝑛𝑔 𝑣𝑖𝑟 𝐼𝑛𝑛𝑜𝑣𝑎𝑠𝑖𝑒: Hoër interbankfooie kan banke voorsien van die fondse om te belê in nuwe tegnologieë, die verbetering van sekuriteitskenmerke, en die verbetering van die algehele betalingsinfrastruktuur.

4. 𝐴𝑎𝑛𝑝𝑎𝑠𝑠𝑖𝑛𝑔 𝑣𝑖𝑟 𝑆𝑝𝑒𝑠𝑖𝑓𝑖𝑒𝑘𝑒 𝑀𝑎𝑟𝑘𝑡𝑒: Banke kan fooie stel wat die werklike koste en risiko's geassosieer met verskillende tipes transaksies of nywerhede weerspieël, wat dalk nie moontlik is met 'n een-grootte-pas-almal fooi struktuur nie.

𝑵𝒂𝒅𝒆𝒍𝒆

1. 𝐻𝑜𝑒̈𝑟 𝐾𝑜𝑠𝑡𝑒 𝑣𝑖𝑟 𝐻𝑎𝑛𝑑𝑒𝑙𝑎𝑎𝑟𝑠: As banke hoë interbankfooie stel, kan handelaars hoër koste in die gesig staar, wat dikwels aan verbruikers deurgegee word in die vorm van hoër pryse. Dit kan mededingendheid en verbruikerskeuse beïnvloed.

2. 𝐺𝑒𝑏𝑟𝑒𝑘 𝑎𝑎𝑛 𝑆𝑡𝑎𝑛𝑑𝑎𝑎𝑟𝑑𝑖𝑠𝑒𝑟𝑖𝑛𝑔: Verskillende banke wat verskillende fooie stel, kan lei tot 'n gebrek aan standaardisering, wat handelaars en verbruikers kan verwar. Dit kan dit ook moeilik maak vir nuwe toetreders om mee te ding as hulle nie soortgelyke tariewe kan onderhandel nie.

3. 𝑃𝑜𝑡𝑒𝑛𝑠𝑖𝑎𝑎𝑙 𝑣𝑖𝑟 𝐴𝑛𝑡𝑖𝑚𝑒𝑑𝑒𝑑𝑖𝑛𝑔𝑒𝑛𝑑𝑒 𝑃𝑟𝑎𝑘𝑡𝑦𝑘𝑒: Groter banke kan die hefboom hê om hoër fooie te stel, wat kleiner banke kan benadeel en mededinging kan beperk. Dit kan lei tot markversteurings waar groter banke oorheers as gevolg van hul vermoë om meer gunstige voorwaardes te dikteer.

4. 𝑅𝑒𝑔𝑢𝑙𝑒𝑟𝑒𝑛𝑑𝑒 𝑒𝑛 𝑁𝑎𝑘𝑜𝑚𝑖𝑛𝑔𝑠𝑟𝑖𝑠𝑖𝑘𝑜'𝑠: Met elke bank wat sy eie fooie stel, verhoog die kompleksiteit van regulerende nakoming. Dit kan lei tot potensiële regsgedinge of boetes as daar gevind word dat banke onregverdig hoë fooie stel.

5. 𝐸𝑘𝑜𝑛𝑜𝑚𝑖𝑒𝑠𝑒 𝐼𝑚𝑝𝑎𝑘 𝑜𝑝 𝐾𝑙𝑒𝑖𝑛 𝐵𝑒𝑠𝑖𝑔ℎ𝑒𝑑𝑒: Hoër fooie kan klein besighede onevenredig beïnvloed, wat kan sien dat 'n beduidende deel van hulle marges deur hierdie koste uitgewis word, wat dit moeilik maak vir hulle om mee te ding met groter besighede wat beter terme kan onderhandel.

Die balans tussen hierdie voordele en nadele kan grootliks wissel afhangende van hoe banke die stel van hul interbankfooie benader en hoe regulasies toegepas word om regverdigheid en mededingendheid in die mark te verseker.

Social Security Commission leaks data (2018)

 The Namibian reported in the edition of 11 June 2018 (https://www.namibian.com.na/68242/read/SSC-leak-exposes-personal-info-online), about the data leak noticed last week on the website of the Social Security Commission (SSC). The reporters that took up the story were able to alert the appropriate staff and the data leak was closed on Sunday, 10 June 2018.

As the leak has now been closed, the following is an overview of the occurrence and what should have been done to prevent such events in other organisations.

The Director of the Namibia Consumer Protection Group (NCPG), Milton LOUW, is an IT expert and owner of Aardvark Investments, a company that often undertakes tracing for insurance companies wishing to trace people who are due monies but their contact details are no longer current.

On Thursday 7 June 2018, a routine search for “Box 1141, Oshakati” showed the following results on Google.

Clicking on this link opened up the following page.

Once in this directory, there are 1,885 files in this directory which consists of submission to the SSC. Some of these files include very personal information such as ID number, SSC Registration number, and even salaries of certain companies. . PLEASE note that the information is from around 2013- 2018 and it is personal information that should not be in the public domain.

In addition to files submitted to SSC by companies, there was also adirectory of files containing the signed performance Performane Agrrements of top managers for the period 2016/17.

Are my company files compromised?

PLEASE NOTE: All inquiries regarding the information of employees and employers should now be addressed to the Social Security Commission: Chariold.Auchab@ssc.org.na, Tel: +264 61 2807712.

What happened?

The website was created with the default directory www.(company).na/files/downloads. In this directory were placed all the electronic forms that employers can use to submit their employee details.
Unfortunately, the webmaster also used this directory to download all the files submitted to the SSC. This directory for ovious reasons needs to be available to the public, search engines, etc. and this did not have a prohibitive .htaccess file.

How to prevent this?

The public face of the company / organisation through its online presence should always be kept seperate from information received from its clients via the internet. This means that any and all correspondence from customers should be automatically routed to a directory that is not part of the public domain.

Conclusion

This is the first, and certainly not the last data breach that the media will report on. Namibia has to develop its security and implement the Electronic Transactions, Data Protection, and Access to Information Acts.
NOTE: .htaccess is the default name for a file that is used to indicate who can or cannot access the contents of a specific file directory from the Internet or an intranet.

DEBT REVIEW needed for consumers

One of the biggest problems in starting a family is that most of the things I want, such as furniture, motor vehicle, etc. costs more money than what I earn in a month. The only option for purchasing these high cost items is to either save or to take it on credit. For myself, I have learned the hard way that it is better to save and buy later, rather than purchase on credit and not be able to afford the monthly payments later.

Unfortunately, most consumers still prefer to buy on credit and can find themselves borrowing recklessly and then becoming “over-indebted”. In many countries of the world, a law has been enacted as a National Credit Act that promotes an effective, fair and accessible credit market and to help protect consumers from “reckless lending” and “over-indebtedness”. Unfortunately, Namibia has not yet enacted many such consumer laws yet.

Under such a credit environment, debt counselling is included as a tool to help consumers get out from under debt. These debt counsellors must be trained and certified so that they can assist consumers with debt problems, help to design debt repayment plans and negotiate on behalf of the consumer with creditors to enable the consumer to afford their monthly debt payments. (This process is called Debt Review). The idea behind debt counselling is to help clients reduce their overall debt with creditors in the most cost effective way. At present, with no legal framework in place for debt counselling, the consumer only has two remedies when they cannot pay their debt: administration and sequestration.

There are, however, severe disadvantages to both of these and they disempower you as a consumer. If your debt is lower than N$50 000 you may apply to have your debt placed in administration. Under administration order a large part of your disposable income can forcibly be taken to repay your debts and comes with an administration charge of up to 12,5 percent of each instalment you pay. This would mean that for every N$100 you pay in debt, N$12.50 would go to cover the cost of the administrator. Under sequestration you lose all your assets, as they are sold to cover as much of your debt as possible and you will need permission from a court-appointed trustee if you want to borrow any money. This disempowering of the consumer needs to be addressed and this is the core reason for introducing debt counselling under a Credit Act. The biggest attraction is that under a credit law the process is regulated and designed to prevent creditors from harassing you and prevent the loss of crucial assets.

In addition – unlike with administration orders – as much as 95% of your monthly payment will go to pay your debts under a debt counselling plan. There is a cost to debt counselling – after all the service is being provided by a trained and certified professional. In the regulations of the law, the Credit Regulator will be able to determine tariffs for an application fee, rejection fee (if you are found not to be indebted), the debt counsellor fee, as well as after-care fees. One of the further benefits is that such a law would enforce more rigidly the “in duplum” rule, which under common law limits the interest that a creditor may charge on any debt you incur. This common law rule holds that the creditor may not charge more interest once the unpaid interest equals the outstanding debt.

I hope the Ministry of Finance will look urgently into the matter of over-indebtedness – which I believe affects more than 15 000 households in the country

Unclaimed Monies in the Namibian Financial Sector

 

List No. 4 is being released on 1 September 2023

All  Pension Funds in Namibia must in the month of January each year publish statements of benefits that have remain unclaimed for a period of five years or more in terms of section 93(1) of the Administration of Estates Act, 1965 (Act No. 66 of 1965) in the Government Gazette.

NAMFISA has noted in 2019 that not all funds have been publishing these lists as required and is busy enforcing this. 

Several funds are using the Consumer Registration Database of over 1 million records and have had some success in tracing these members or their beneficiaries. A database has also been created to capture all the data from thepublishezd Gazettes since the early 1970’s. It is expected that by February 2023, this database will be available to the public.

You can search to see if you or your family are beneficiaries of unclaimed monies:

GIPF: https://www.gipf.com.na/member-benefits/unclaimed-benefits/

Sanlam: 

1. https://milton-louw.blogspot.com/2022/11/unclaimed-monies-newsletter-no-1-of.html 
2. https://milton-louw.blogspot.com/2022/11/unclaimed-monies-newsletter-no-2-of.html 
3. https://milton-louw.blogspot.com/2022/11/unclaimed-monies-newsletter-no-3-of.html 

Due to so much interest in the Unclaimed Monies lists, there is now a form for you to register and see if there is unclaimed money for you.

https://forms.gle/J7r6Cbjnv2gwwY1u9