Federal Competition and Consumer Protection Commission, FCCPC (formerly Consumer Protection Council). ,in conjunction with the Central Bank Of Nigeria (CBN), has launched aggressive customer awareness program towards the new Bank charges.
This is occassioned by the frequent controveries sorrounding policies of goverrment especially those boardered on bank charges and values on consumable items in Nigeria.
According to the Director General of the FCCPC,Babatunde Irukera said the body is poised to ensure that Nigerians are inundated with the transparent operation of the new CBN policies on Bank charges among others .
The FCCPC in it’s mandate rolled out a 13 point “Frequently Asked Questions”(FAQs),that will guarantee the protection of rights of customers beginning from January 2020.
This include the code named “FCCPC advisory Guide” that provides some basic questions and Guide answers segmented into 13 points as follows.
“O1 Are the charges issued by the CBN mandatory?
No, they are a Guide.
O2 Are the charges imposed by the CBN?
No,they are applicable maximum charges for different charges.
O3 Has the CBN directed Banks to apply charges in the Guidelines?
No, CBN circular states it” Provide the BASIS for the application of charges”.
O4 Is it mandatory for banks to charge for every product or service under the Guideline?
No,but Banks shall not charge anything in excess or above the maximum provided in the Guide.
O5 When does the new Guide to Bank charges take effect?
O1 January 2020.
While the others are
O6 What is the purpose of the new Guide to Bank charges?
To enhance flexibility, transparency, and competition in the Banking industry.
O7 Who is the Guide issued to ?
The Guide is issued to Banks and their customers for their mutual knowledge and benefit.
O8 Are Banks allowed to charge exactly the same thing within the Guide?
It is criminal for undertakings to discuss or agree on pricing or otherwise coordinate their conduct.Section 59(1),(2a),S.(107),S.(171) (a),S.(108),(I) of the FCCPA,2018.
O9 Does it mean that Banks should not charge the same thing for products and services?
Price is a material and vital tools for competition,banks must compete,not collude
10 Where the Guide states the rate as “Negotiable”what should the customer do?
The Guide expects customers to initiate negotiation,but mandates banks not to charge above the maximum
11 Since CBN published the Guide,are banks obligated to inform customers of their new charges?
Yes,banks have an obligation to reveal and not to conceal S(128 FCCPA) disclose and not decieve their customers(S,125.S.126,FCCPA.2018). Banks must also comply with customers rights to fair dealing.(S.124.S.129,FCCPA 2018).
12 Does the Guide allow banks to exclude all liabilities and idemnity(e.g.SMS alerts).?
No,the Guide allows the banks to exclude specific, but not the general liability.Banks remain subject to implied subject under law S.129(1b)(ii)&(iv).S.129(1c), (i)& (ii),S.130(1b),S136 and S138(3) FCCPA
13 In some places the Guide states that the bank charges shall be “Cost Recovery”.What is cost recovery?
Cost recovery generally means the real cost of the service that the bank has incurred on behalf of the customer,it is an exact,not recoverable cost.Customers are entitled to a transparent and evidentiary disclosure of cost incurred on their behalf”
While contacts to redress in FCCPC from any arising anomaly negating the following provisions are as follows, Hotlines..08056002020 and 08056003030,with contact address on No 17 Nile street, Maitama Abuja.Email address www.fccpc.gov.ng and twitter@fccpc nigeria.
Irukera promised to prevail on financial institutions to abide by the provision of the new Bank charges,saying monitoring will step up and sanctions will be recommended appropriately to erring banks .