FAQs – Credit & Savings Institutions
Q – I paid up my loan before the stipulated time, my Credit Provider penalized me 3% for that, is that allowed?
No, early settlement fee/penalties are prohibited by the Consumer Credit Act, 2016. It is recommended that such practices be reported to the FSRA.
Q – What are the requirements for one to be licensed as a Credit Provider?
For registration requirements, kindly visit the FSRA website; www.fsra.co.sz
Q – Does the FSRA/ Consumer Credit Act, 2016 stipulate or control interest rates to be charged to consumers by Credit Providers?
Interest rates will be stipulated in the Consumer Credit Act, 2016 Regulations which are currently in the process of being passed into Law.
Q – How long are Micro lenders allowed to charge interest on defaulted accounts before handing it over to the Credit Bureau?
Section 39(1)(f) of the Consumer Credit Act, 2016 allows for the charge of default fees upon default on payments and compels Credit Provers to submit all credit information to a Credit Bureau. However, a Credit Provider should give you notice on its intention to report your information to the Credit Bureau.
Q – Is it true that once you have settled your loan, the services provider should refund you your insurance cover?
It depends. Only in cases whereby premiums are paid annually, as opposed to monthly. Upon settlement of the credit agreement, the Credit Provider is to refund you the unused portion of the risk premium for the remaining part of the year, if policy is cancelled upon settlement of the loan.
Q – What should I do if my Credit Provider refuses to give me back my ID and ATM card?
The Consumer Credit Act, 2016 prohibits a Credit Provider from collecting ID and ATM cards from consumers. Such practises should be reported to the FSRA.
Q – How long does it take to clear your name from the Credit Bureau?
As soon as the Credit Bureau receives proof of the settlement of the amount in arrears, your name is cleared.
Q – Does the FSRA issue Trading Licenses?
As a regulator of the non-bank financial services sector, the FSRA issues licenses to entities which operate within the sector.
Q – If I want to lodge a complaint against a services provider, is my confidentiality guaranteed to avoid victimization?
If it’s a tip-off on unlicensed entities then your ID remains anonymous, but a complaint would require a resolution between the consumer and the service provider. Therefore, details on the complainant and the actual complaint are important.
Q – How do I apply for a loan with the FSRA?
The FSRA is not a Credit Provider. A list of authorised Credit Providers licensed by the FSRA is available on the FSRA website. Kindly visit the website www.fsra.co.sz for listing or call the FSRA on +268 2406 8000.
