The House of Representatives has expressed dissatisfaction with the excessive charges and unauthorized deductions imposed by commercial banks, which violate existing laws.
During a plenary session chaired by Speaker Tajudeen Abass, a motion introduced by Mr. Godwin Offiono was adopted, and the House mandated its Committee on Banking and Currency to investigate this issue and provide a report within one month.
Additionally, the House assigned its committee on Legislative Compliance to ensure the implementation of the probe’s findings.
Offiono alleged that he had received information about certain banks and financial institutions engaging in unethical practices by overcharging and making unauthorized deductions from their customers.
The lawmaker claimed that customers across various commercial banks had been burdened by excessive charges on their accounts.
Specifically, he mentioned that Deposit Money Banks (DMBs) had introduced various deductions to augment their income, much to the discomfort of customers. He pointed out that in addition to Stamp Duty, bank customers were also subjected to Value Added Tax (VAT) charges on applicable transactions in their account
Furthermore, Offiono stated that commercial banks were imposing exorbitant interest rates on loans and overdrafts, surpassing the rates agreed upon in the offer letter.
He criticized the arbitrary increase in interest rates and other fees without notifying or obtaining consent from customers, which goes against the guidelines of the Central Bank and the Chartered Institute of Bankers of Nigeria (CIBN).
expressed his disappointment regarding the prevalent practice of commercial banks introducing charges that are not recognized in the Central Bank Guide to Bank Charges. He specifically highlighted the improper application of maintenance fees, instances of banks overcharging for maintenance fees, the inclusion of transactions that should be exempt from such charges, as well as infractions related to loan liquidation and bank-induced transactions. He considered these actions to be violations of the established guidelines and regulations.
Offiono expressed his disappointment regarding the prevalent practice of commercial banks introducing charges that are not recognized in the Central Bank Guide to Bank Charges.
He specifically highlighted the improper application of maintenance fees, instances of banks overcharging for maintenance fees, the inclusion of transactions that should be exempt from such charges, as well as infractions related to loan liquidation and bank-induced transactions.
He considered these actions to be violations of the established guidelines and regulations.
