Illegal Deductions: Banks must repay excess charges with interest - CBN
The Central
Bank of Nigeria (CBN), said any bank that deducts monies illegally from a
customer’s account for products and services would be forced to refund the
money to the customer with interest.
Mr Fada
David, Consumer Complaints Management, Consumer Protection Department, CBN,
said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in
Abuja.
NAN reports
that this is sequel to complaints by bank customers within the Federal Capital
Territory (FCT) over excess charges by banks through Automated Teller Machine
(ATM) withdrawals.
The
customers said as a result of the development, they dreaded making withdrawals
using other banks ATMs because of the continued charge of N65 for every
transaction.
According to
the customers, most banks within the city centre have programmed their ATMs to
dispense only N10,000 or less per transaction, thus ripping off customers
withdrawing more than that amount.
The customers
complained that if they had to withdraw N100,000 or more through other banks
ATM, it meant they would lose so much money.
They,
however, called on the CBN and other relevant authorities to look into the
matter so as to help poor Nigerians.
According to
David, the Monetary Policy Circular of the CBN gives certain guidelines as to
how much should be refunded to customers if excess charges are discovered.
“Part of the
punitive measures is that if excess charges are discovered, they are refunded
to consumers with interest,” he said.
David,
however, assured bank customers that the CBN monitors all banks regularly to
make sure that banks do not short-change them.
He also
encouraged customers to read the CBN’s Guide to Bank Charges circular to know
those charges that their banks were allowed to charge and the correct amount.
“Consumers
should consult this document to know how much they are expected to pay for
services.
“When you go
through it and in a situation where you see charges that you do not understand,
you have the right to write your bank and get them to explain what the charges
are.
“In a
situation where it becomes clear that the customer was charged excessively, the
customer should get them to reverse it.
“You have
the right to know how much you are charged from operating your account and make
sure that the bank only charges the specified amount,” he said.
Also, Mr
Oludamola Atanda of the Consumer Education Division, Consumer Protection
Department, CBN, urged bank customers to demand for their statement of account
monthly.
He said that
it would help customers to monitor their accounts closely.
“You have
the right to demand for the right product and services. The bank cannot force
you to go for a specific product or loan facility. You have the right to
choose.
“If they
give you a product you do not like, you do not have to take it. Its important
for us to understand this.
“There is
also the issue of right to privacy. My bank should not share my details with
just anybody. For instance, a wife cannot come and say she wants details of her
husband’s account.
“Only by
court order can an account details by revealed to a third party,” he said.
Atanda said
at times, customers complain about certain bank products because they were not
properly informed about the products.
“If I am
taking a product, my bank has the responsibility to educate me on that product.
“If it is a
savings product, a customer should know how it works, how many times to
withdraw in a month, how much interest to expect and the minimum deposit on the
account.
“We are
saying that you have the right to demand good service. Those are the things we
want to let customers know,” he said.
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