LCCI backs lawmakers’ call on failed transaction reversals

The Lagos Chamber of Commerce and Industry (LCCI) has supported the House of Representatives’ call on CBN to direct banks to upgrade their systems toward instant reversal of failed transactions without customers prompting it.

The President and Chairman of the Council of LCCI, Mr Gabriel Idahosa, made the call on Wednesday in Lagos.

The House of Representatives had on Tuesday during plenary called on CBN to direct banks to reverse customers’ funds within legal timelines whether the customers lodged complaints or not.

The lawmakers also called on CBN  to instruct banks to upgrade their systems to mitigate failed transactions and instantaneously reverse failed transactions without the customers asking.

Idahosa commended the lawmakers for intervening to address the issue, highlighting that two banks had already taken steps to upgrade their systems to overcome the challenge.

According to him, these banks have been able to return funds from failed transactions within minutes, setting a positive example for other banks to follow suit.

He said that LCCI supports the calls that banks that had not upgraded their systems to achieve automatic reversal for failed transactions should do so as an obligation to their customers.

“So, as a customer, if I try to transfer money and it did not deliver, don’t keep the money, you need to return it to me, immediately. Some banks already do that, and within a few minutes they credit your money into your account,” he said.

The LCCI boss explained that customers should not bear the burden of funds not being delivered as it constitutes a breach of service and contract.

Idahosa emphasised that banks must promptly return undelivered funds to customers as soon as failures are detected.

He pointed out that failed transactions impact a significant number of customers, many of whom might not pursue complaints with bodies like the Federal Competition and Consumer Protection Commission (FCCPC) which could fight for their rights.

“Most customers don’t really have the time to pursue it, especially if the amount is too small to take their time,” he said.

Idahosa, therefore, urged FCCPC to sanction erring banks.

“Firstly, the issue is that most customers do not know they have a right to complain to the commission.

“Then, two, if the complaint gets to the Federal Competition and Consumer Protection Commission, then we expect the council to take action immediately.

“So, it’s also one for customers to report to the council and the council to be efficient to sanction the banks or at least make them to reverse the transfer very quickly and if they delay, sanction them,” he said.

He said the council needed a large workforce to be able to deal with thousands of failed transfer issues.