FCCPC Issues Stern Warning To Banks Over Customer Rights Violations During Service Failures

FCCPC Issues Stern Warning To Banks Over Customer Rights Violations During Service Failures

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to banks in Nigeria, stating that ongoing service disruptions preventing customers from accessing their funds constitute a violation of customer rights..…..CONTINUE READING 

In a statement released on Tuesday by Executive Vice Chairman Tunji Bello, the FCCPC highlighted the detrimental effects these disruptions have on millions of consumers.

Bello emphasized the importance of accountability, urging banks to provide timely updates regarding the causes, extent, and expected duration of any service issues. He noted that customers affected by these disruptions have the right to seek redress, and the FCCPC is currently assessing whether these rights are being upheld.

Under the Federal Competition and Consumer Protection Act (FCCPA) of 2018, bank customers are entitled to specific rights that ensure fair and accountable service. A critical aspect of this legislation is the right to quality service, which requires that all service providers, including banks, maintain a reliable and functional service.

When banks fail to provide access to essential financial services, they risk breaching this standard, leading to financial hardship, loss of trust in the banking system, and broader economic repercussions.

The FCCPA also guarantees consumers reasonable access to goods and services, a principle that is compromised when technical failures hinder customers from accessing their funds. As Nigeria moves towards a more cashless economy, online banking has become a necessity rather than a convenience.

Disruptions that prevent consumers from conducting transactions or accessing vital funds not only cause inconvenience but may also infringe upon their rights. The FCCPC insists that service providers adhere to principles of transparency and communicate openly and accurately with their customers, as stated by the FCCPC chief.