CBN threatens sanctions against breaches in fresh consumer complaints management guidelines

To ease complaint management in the financial industry, the Central Bank of Nigeria (CBN) has announced automated system of addressing customers complaints, warning all financial institutions to strictly adhere to the guidelines or face severe sanctions.

In a circular on ‘Deployment of the Consumer Complaints Management System’ issued at the weekend, the financial industry regulator stated that it would apply the necessary sanctions on infractions.

The circular signed by CBN Director, Kofo Salam-Alada, and released to financial institutions, stipulated three major guidelines for managing customers complaints which banks and other financial institutions are required to follow with effect from January 2, 2019.

As part of the guidelines, banks and other financial institutions are required to assign a tracking to every complaint from respective customers, and also acknowledge receipt of every complaint through an e-mailed response.

This would also include the tracking number that has been assigned to commence the uploading of all complaints on the CCMS.

The circular reads in part: “The Central Bank of Nigeria, in furtherance of its mandate to promote a stable financial system, embarked on the development of the Consumer Complaints Management System, and an automated system aimed at easing complaints management to engender public confidence in the financial system.

“With effect from 2nd January, 2019, banks and other financial institutions are required to: Assign tracking number for every complaint received from their customers, issue an acknowledgement which shall contain the assigned tracking number to the customer, and commence upload of complaints to the CCMS on a daily basis.”

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CBN stated that the move was part of the effort to ensure that the banking and finance sector was stable and conducive for all, and instructed all financial institutions to abide by the guidelines.

The apex bank added that the Consumer Complaint Management System (CCMS) would ultimately boost the confidence of Nigerians in the banking sector.

“In view of this development, the CBN has made it compulsory for banks and other financial institutions to abide by three important guidelines,” CBN stated.

It enjoined banks to always comply with the timelines stipulated in the CCMS for resolution of the various categories of complaints.

“Please note that non-compliance with this circular shall attract sanctions in line with the Banks and Other Financial Institutions Act, Cap B3, LFN 2004,” CBN warned.

In its half-year report, the CBN had disclosed that the number of complaints it received from consumers of financial services rose to 1,439 in the first half of 2018 from 1,141 in the corresponding period of 2017.

The complaints were mainly in respect of excess charges, frauds, dishonoured guarantees and unauthorised deductions/transfers, among others.

A total of 2,451 complaints, including those outstanding from 2017, were resolved in the review period, compared with 1,270 complaints resolved in the same period of 2017, according to the CBN.

The CBN said total claims in the review period in local and foreign currencies amounted to N20.5bn, $163,479, £2,889.98 and €32.82, compared with N14.72bn, $2.42m and €6,940 in the corresponding period of 2017.

The CBN stated that the sums of N6.80bn, $119,349, £2,889.98 and €32.82 were refunded by financial institutions to their customers, compared with the sum of N7.21bn, $2.40m and €6,940, refunded in the same period of 2017.