House of Representatives Will Look Into Commercial Banks' Excessive Fees and Unauthorized Deductions
The focus of the House of Representatives has shifted to the banking industry in Nigeria.
This time around, lawmakers are serious about looking into complaints about predatory lending practises at commercial banks.
At the Plenary meeting presided over by Speaker Tajudeen Abass, a resolution put up by Hon. Godwin Offiono was approved.
As a result, the House ordered its Committee on Banking and Currency (when created) to conduct the investigation and report back within four weeks so that additional legislation might be considered.
In addition, the House stipulated that the Committee on Legislative conformity (when created) verify conformity during implementation.
Legislators in Nigeria have claimed that some banks and financial institutions there engage in the unethical practise of fleecing customers by adding on fees and making deductions without their knowledge or consent.
Also mentioned were the complaints of Commercial Bank account holders about fees being too high.
According to the House, Deposit Money Banks (DMBs) have implemented new deductions to boost their earnings, which has unnerved many of their clients.
In the speaker’s speech: “The House is further aware of the arbitrary increase in the interest rate on loans and overdrafts and increase in the other fees without notifying and getting the customer’s consent as stipulated in the Central Bank Chartered Institute of Bankers of Nigeria (CIBN) guideline.
“The House is concerned that the creation of charges not recognised in the Central Bank Guide to Bank charges is a common practice by Commercial Banks.
“The House is also concerned about the wrong application of maintenance fees, banks overcharging maintenance fees, the inclusion of transactions exempted from maintenance charge, loan liquidation and bank-induced transactions.
“The House is worried that as affected customers attempted to lodge complaints to the Bank’s Customer Care, they are treated as beggars without result”.