The House of Representatives has mandated its committee on banking and currency to investigate the issue of excess charges and illegal deductions by commercial banks in Nigeria and report back within four (4) weeks for further action.
The decision was taken at Tuesday's plenary following the adoption of a motion brought by Hon. Godwin Offiono (PDP, Cross River) on the "Need to stop excess charges and illegal deductions by commercial banks in Nigeria"
Leading debate on the motion, Offiono noted that some banks and financial institutions in Nigeria indulge in the unethical practice of fleecing their customers through excess charges and unauthorised deductions.
He alleged that customers of different commercial banks are groaning over excessive charges on their accounts, 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.
"Aware that apart from Stamp Duty, bank customers also pay Value Added Tax (VAT) charges applicable on all VATable transactions in their account.
"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", he submitted.
The lawmaker further argued that "There was an 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.
"Concerned that the creation of charges not recognised in the Central Bank Guide to Bank charges is a common practice by Commercial Banks;
"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"
"Worried that as affected customers attempted to lodge complaints to the Bank's Customer Care they are treated as beggars without result"
The motion was unanimously adopted.
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