By Femi Ogunshola
The House of Representatives has urged commercial banks in the country to stop excess charges and Illegal deductions from customers.
The resolution followed the adoption of a motion by Rep. Godwin Offiono (PDP-Cross River) at the plenary in Abuja on Tuesday.
In his motion, he said some banks and financial institutions in Nigeria indulge in the unethical practice of fleecing
their customers through excess charges and unauthorised deductions.
He said customers of different commercial banks were groaning over excessive charges on their
accounts, the financial institutions known as Deposit Money Banks (DMBs) had reportedly introduced different deductions.
This according to him was to increase their income, a development that is uncomfortable with customers;
“Apart from Stamp Duty, bank customers also pay Value Added Tax (VAT) charges applicable on all VATable transactions in their account.
He said commercial banks were charging outrageous interest on loans, and overdraft at a rate that was higher than the agreed rate in the offer letter.
He said such arbitrary increase were done in the interest rate on loans and overdrafts and increase in the other fees without notifying and getting customer’s consent as stipulated in the Central Bank /Chartered Institute of Bankers of Nigeria (CIBN) guideline.
He expressed concern that such creation of charges not recognised in the Central Bank Guide to Bank charges was a common practice by Commercial Banks.
He raised concerned about the wrong application of maintenance fees, banks overcharging maintenance fees, the inclusion of transactions exempted from maintenance charge.
Others include: loan liquidation and bank-induced transactions among others.
He said affected customers attempted to lodge complaints to the Bank’s Customer Care but they were
treated as beggars without result.
Adopting the motion, the House mandated the Committee on Banking and Currency when constituted to investigate the issue of excess charges and illegal deductions by commercial banks.
The House also mandated the committee on Legislative Compliance when constituted to ensure implementation.(NAN)
