Excess charges: Reps begin investigation of transactions imposed by commercial banks
…Banks adopting illegal means to cheat customers — Ehindero
By Dennis Matthew
The House of Representatives has commenced investigation into excessive charges on bank transactions allegedly imposed by commercial banks.
In the quest for the commencement of the probe, the Committee on Banking and Currency has been charged by the Green Chamber to launch a thorough investigation into the excess charges on transactions by the commercial banks from customers’ transactions, with mandate to report back to the House within four weeks for further legislative action.
The necessity for the probe came on the heels of the motion moved by a member of the House, Sergius Ogun, titled “Need to Investigate the Imposition of Excessive Charges on Bank Transactions on Deposit Money Banks in Nigeria.”
The motion was however unanimously adopted after its introduction.
While introducing the motion, Ogun noted that Section 88 (1) and (2) endowed the National Assembly with constitutional power to conduct investigations into activities of any authority executing or administering laws made by the National Assembly.
He further noted that the commercial banks in the country impose excessive and non-statutory charges on varying bank transactions carried out by customers.
While recalling the efforts of the Central Bank to nip the menace in the bud sometime in January, 2020, he said the Central Bank of Nigeria had issued a ‘Guide to Charges by Banks, other Financial Institutions and Non-Bank Financial Institutions,’ stating the approved charges to be imposed by DMBs.
“The House is concerned that despite the guide issued by the CBN, some banks still deduct outrageous amounts of money from their customers in the guise of bank charges with different descriptions.
“The House is worried that in most cases, the deductions are already covered by the CBN approved monthly Account Maintenance Fee (AMF), thus amounting to double deduction,” Hon. Ogun said.
Earlier on February 26, 2020, the House of Representatives had resolved to investigate the illegal and excessive charges being imposed on account holders by Deposit Money Banks.
Yesterday, while decrying the deductions by commercial banks from customers’ accounts, the indiscriminate charges on transaction was re-echoed and reintroduced at Chamber’s plenary.
In this regard, the House, therefore, resolved that the Committee on Banking should meet with “professional financial consultants to investigate and determine the extent of excess charges on the House of Representatives and other public institutions and individuals’ accounts held in various banks to determine the extent of excess charges, if any, in the last eight years.”
The committee was, however, mandated to present recommendations within four weeks for further legislative actions.
While reacting to the excess charges from customers’ account by commercial banks on transactions the lead strategist of Nigerian Workforce Strategic and Enlightenment Centre ( NIWOSEC), Dr. David Kayode Ehindero commended the step taken by the House of Representatives.
Speaking with Nigerian NewsDirect, Ehindero said, “The move by the Lawmakers is a welcome idea. Banks are truly ripping off their customers of their hard earned money through various illegal means.
“All manner of charges, despite the fact that the customers money are been used to fund loans and advances which attracts interest.
“Commercial Bankers must wake up to their responsibility of growing the economy by funding projects.”
