Sometimes unaware of their rights and without having been afforded an opportunity to study and agree to certain contractual terms and conditions, customers in their desperation for services sign these contracts, which in the end bind them for extended periods. These contracts are at present considered binding on customers, irrespective of how onerous, unreasonable or unexpected such terms might be.
As a banking regulator, the Bank of Namibia has an interest in encouraging standards of good banking practices whereby commercial banks act fairly and reasonably in relation to their customers. It is against this background that in addition to a possible regulation on unfair terms, the Bank is busy developing Code of Good Banking Practice.