Reps To Investigate Commercial Banks’ Excess, ‘Illegal’ Charges 

The House of Representatives has resolved to look into the matter concerning excess and ‘illegal’ charges by commercial banks in the country.

The members resolved the adoption of a motion sponsored by Hon. Godwin Offiono on Tuesday at the Plenary presided over by Speaker Tajudeen Abass.

The house claimed that some Banks and Financial Institutions in the country engage in the unethical practice of fleecing their customers through excess charges and unauthorised deductions.

The lawmakers also noted that financial institutions known as Deposit Money Banks (DMBs) have reportedly short-changed their customers through the introduction of different deductions to increase their income.

The development, they said, has left commercial bank customers complaining about these charges.

The house, therefore, directed its Committee on Banking and Currency (when constituted) to probe the issue and report back within four weeks for further actions.

It pointed out that it was aware that aside from Stamp Duty, bank customers also pay Value Added Tax (VAT) charges applicable on all VATable transactions in their account, adding that commercial banks as well charges outrageous interest on loans and overdraft at a rate that is higher than the agreed rate in the offer letter.

The lawmakers also directed that the Committee on Legislative Compliance (when constituted) ensure implementation was also mandated to ensure compliance.

According to Offiono, “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.”