Business News

Sue banks for illegal deductions, ex-CIBN President urges Nigerian customers 

A former president of the Chattered Institute of Bankers of Nigeria (CIBN), Mr. Okechukwu Unegbu, has urged bank customers in Nigeria to approach the courts if they observe irregular deductions from their accounts.

Unegbu, who is also a former managing director of the defunct Citizens International Bank, gave the advice in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

He spoke against the backdrop of complaints by bank customers on unexplained, multiple deductions from their accounts.

According to him, the best thing is for customers to initiate court cases against such banks, even while accepting that the justice system is slow.

He noted that the banks make millions of Naira by deducting from their customers five Naira or N10 per transaction but people see it as small, so they just ignore.

“When you consider that they have millions of customers that they take such charges from, you will know that it is a lot of money for them,” he said.

“That document explicitly states the legal charges that banks are entitled to from their customers. 

“But most Nigerian banks charge much more than what is recommended, which is against all principles of banking. 

“Such things do not happen abroad. And the problem is that most customers do not complain. 

“If customers get such charges, they should start by writing to the banks to complain. Going to the bank physically might not yield any positive result. 

“If customers can develop the habit of complaining, the banks will start learning,” he said.

He said that the CBN had a complaint desk for such issues, adding that the desk appears not to be very effective.

Meanwhile, checks revealed that there are charges approved by the apex bank across all banks in Nigeria.

“The fee for issuing a credit card is N1,000 (one-off charge), regardless of the type of card issued, whether premium or regular. 

 “The fee for reissuing lost or damaged cards (at the customer’s request) is N1,000 (one-off charge), while renewal fee when existing cards expire, was N1,000 (one-off charge). 

“Monthly statements of account for current and savings accounts are required and are free of charge. Special statement of account request is a maximum N20 per page. 

“Monthly statements of account for current and savings accounts are required and are free of charge. Special statement of account request is a maximum N20 per page. 

“SMS alert is mandatory. If a customer chooses not to receive SMS alerts, the consumer must provide the bank with an indemnity (for any damages that may occur as a result),” the CBN stated in the guideline.

The apex bank warned that any financial institution that violated any of the terms in the guidelines would be fined two million Naira per violation, or as the CBN may determine from time to time.

The bank advised customers to give deposit money banks at least two weeks to resolve any issues, failure of which it would intervene.