Cama cautions banks on skinning consumers

The Consumers Association of Malawi (Cama) on Monday asked the country’s commercial banks to be transparent by disclosing to customers all the details about the loans they are promoting.

Cama’s remarks come against a background of increased number of banks promoting their loan facilities.

“[Cama] has noted with concern that many financial institutions, especially commercial banks are advertising their services and products to consumers. This is very welcome to consumers. However, what is conspicuously missing from these advertisements and promotions is detailed information on the cost of such services to the consumer.

“Consumers will not hesitate to rush for these loans, especially given the current economic conditions which may force them to forgo the need to read and understand the terms of the contract agreement and their obligations to fulfil their requirements.

Bankers Association of Malawi (BAM) executive director Lyness Nkungula was not immediately available for comment.