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CBN: banks must repay excess charges with interest

CBN: banks must repay excess charges with interest

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Banks deducting monies illegally from their  customers’ accounts for products and services, will be made to refund such monies with interest, the Central Bank of Nigeria (CBN), has said.

Its Consumer Complaints Manager, Consumer Protection Department, Fada David, who spoke in Abuja yesterday, said the apex bank’s new stand is coming on the heels of repeated complaints from banks’ customers of excessive charges by their banks for withdrawals from Automated Teller Machine (ATM).

David said: “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 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.

“Bank customers 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,” he said.

He added that “in a situation where it is 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 at CBN, urged customers to demand for their monthly statement of account. This he said would help customers to monitor their accounts closely.

Atanda noted that bank customers “have the right to demand for the right product and services. The banks 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”.

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.

In recent times across the Federal Capital Territory (FCT), bank customers have lamented that they now dreaded making withdrawals using other banks’ ATMs because of the continued charge of N65 for every transaction.

The customers complained that most banks within the city centre have rigged 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.


The post CBN: banks must repay excess charges with interest appeared first on The Nation Nigeria.

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