In year 2015
alone, CBN investigated ‘over 6000 complaints from banks’ customers and
compelled banks ‘to refund the sum of over N6.2 billion to affected customers’.
The apex bank however, failed to state the total amount claimed by customers,
whether or not the affected customers were satisfied or not with the amount
refunded and whether the culprit banks were sanctioned. Such information would
have assisted in appreciating the convergence or divergence of what was claimed
and what was refunded; the feelings of the claimant customers about the final
outcome of their complaints, and CBN’s ‘resolve’ to continuously enforce the
provisions of the Revised Guide to Bank Charges.
Of course,
there have been many complaints by customers of banks about unauthorised and
illegal charges. Such fleecing of the customers has become the rule rather than
the exception. The excesses come under different descriptions such as
management fees, processing fees, interest charges, commission on turnover,
card maintenance fees, account maintenance fees, deposit, withdrawal and
transfer telephone alert fees and ATM fees. Even the recently introduced stamp
duty charge has become another source through which they have commenced
overcharging their customers. In one transaction, some banks send more than two
text message alerts and charge for each.
The banks,
for reasons, such as greed, moral and professional bankruptcy, have often
chosen to be the proverbial dogs eating the meat kept in their care. This has
of necessity built distrust in the banks or the banking industry. This has had
adverse implications for CBN’s programme of financial inclusion as well as the
volume of money outside the banking system and effectiveness of monetary policy
implementation.
CBN should,
however, know that not everyone who has been fleeced by banks has complained or
even has the capacity to complain to it. It is likely that those who complained
are an insignificant number of those that have suffered in silence in the hands
of banks. There might have been customers whose accounts witnessed high volume
of transactions and excessively imposed with huge amount of charges. Customers
who are monthly charged amounts as little as N40-N200 are unlikely to have
complained. Yet being in the majority, given over 60 million bank customers in
the system, the banks may have fleeced customers substantially.
Equity and
good practice demand that banks should either voluntarily refund what they have
illegally taken from their customers or should be compelled to do so, whether
affected customers have complained or not. If banks choose to wait until
compelled, the CBN should, aside from the refund, impose deterrent sanctions
against them. It is high time those who debase the noble banking profession and
sabotage efforts aimed at financial inclusion were brought to book so that
appropriate lessons may be taught.
It is
equally important to emphasize the need for regulators in the banking and
financial system to initiate enduring public awareness programmes that will
build financial knowledge and literacy of consumers. For all that the CBN may
believe, a large percentage of the banking public may be unaware of the Revised
Guide to Bank Charges which specifies allowable charges for all banking services.
Even if they know, its application may be a challenge for many. Such awareness
programmes will enable the consumers to know when their banks are not being
forthright with them and the steps they may take to protect themselves.
It is
imperative to observe that the Consumer
Protection Council (CPC), the government organ set up to protect consumers,
seems not to have focused on the banking industry where consumers are daily
crying out in anguish. It should wake up to its responsibilities or the quality
and capacity of its leadership should be subjected to re-evaluation.
However, the
responsibility of ensuring that CPC fulfills the expectations of the citizenry
and works according to the law rests on the Ministry of Commerce and Industry.
The time is ripe for the minister to take interest in the performance of the
council in order to save innocent consumers of banking services from the
excess-fee-charging banks.
While
excess, illegal and unauthorised charges by banks should be seen as part of
regulatory failure on one hand and impunity on another, it should also be
classified as a serious financial crime by banks against their customers. This
should not be allowed to continue. (Guardian)
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