The House of Representatives, on Tuesday, resolved to investigate the issue of excess charges and illegal deductions by commercial banks in the country.
This followed the adoption of a motion sponsored by Hon. Godwin Offiono at the Plenary presided over by Speaker Tajudeen Abass
The House mandated its Committee on Banking and Currency (when constituted)
to carry out the investigation and to report back within four weeks for further legislative action.
It also directed that the Committee on Legislative Compliance (when constituted) ensure implementation was also mandated to ensure compliance.
The House noted that some Banks and Financial Institutions in Nigeria indulge in the unethical practice of fleecing their customers through excess charges and unauthorised deductions.
It also noted that customers of different Commercial Banks were groaning over excessive charges on their accounts.
The House said the financial institutions known as Deposit Money Banks (DMBs) have reportedly introduced different deductions to increase their income, a development that is uncomfortable with customers.
The House said that it was aware that apart from Stamp Duty, bank customers also pay Value Added Tax (VAT) charges applicable on all VATable transactions in their account.
It said it was also aware that Commercial Banks are charging outrageous interest on loans, and overdraft at a rate that is higher than the agreed rate in the offer letter.
According to him, “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 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 recognized 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 amongst others.
“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”.
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