In view of
the public outcry against CBN's directive to increase approved bank charges
with effect from May 1 2017, Consumer Advocacy Foundation of Nigeria CAFON is
set to launch another consumer protest tagged
#CloseOneMillionBankAccountsIn2017.
The aimed is
to mobilse Nigerian consumers to resist what it described as “excessive charges’’
by Nigerian banks. The Consumer Advocacy NGO initiated the #NoBankingDay
protest on March 1, 2016, to draw national attention to bank consumers'
dissatisfaction with excessive and illegal bank charges.
CAFON
Founding President, Ms Sola Salako, in a statement stated that some of the
disputed and unpopular charges include: a 600% increase in Debit Card
Maintenance Fee from N100 per annum to N50 per month; Excessive Account
Maintenance Charges; Mandatory SMS service charged at N4/SMS as against actual
cost of less than N1 for bulk SMS; N65 per ATM other bank withdrawal after 3
withdrawals.
“The banks
have dubiously altered this to ensure consumers exceed the monthly 3 free
withdrawals quickly by programming their ATM to dispense only N10,000 maximum
per transaction for other bank's customers as against N40,000 maximum possible
for their own customers’’, the statement added.
“A recent
front page report in Vanguard stated that top ten banks raked in over N160bn
from online transactions charges in 2016 alone! These excessive charges have
been providing massive income for the banks from ancillary online platforms as
against the core banking services, thus posing a significant threat to the
success of CBN's own Cashless Policy initiative’’, Salako added.
She
explained that the proposed #CloseOneMillionBankAccountsIn2017 consumer action
is predicated on the need to drastically reduce the numbers of active or live
bank accounts from which “these unreasonably excessive charges are regularly
deducted’’.
According to
the group, Nigerian banks are known to be deducting multiple charges from every
account open in their books irrespective of whether there was any transaction
done in the month or not; adding that ‘’even dormant accounts are levied with
SMS alerts and VAT charges’’;
saying
consumers have also complained that they are often charged for an unsolicited
birthday greeting SMS by most banks.
"Since
the CBN has refused to stop the alleged sector extortion via excessive charges,
we advise consumers to close all non-essential bank accounts immediately. That
way, we can minimize the available channels from which they make such
stupendous income at the consumer's expense", Salako further explained.
“The
proposed protest is simple, non-confrontation and an exercise of the consumer's
right to choose. It is also pragmatic, frugal and can save consumers billions
in excessive bank charges’’, she harped.
CAFON
pointed out that most consumers operate more than one bank account, sometimes
in multiple banks.
“All these bank
accounts are subjected to multiple charges monthly even when they have not been
active. We urge consumers to audit their numerous bank accounts, identify the
most essential to their lifestyle, employment or business needs, keep those and
initiate the process to close the non- essential accounts in their personal and
business names immediately. Corporates must also do the same to minimize what
they lose monthly to excessive bank charges’’, the group further urged
consumers.
“If
consumers take action immediately, we can prevent the charges for the month of
May. All an account holder needs to do is write the Branch Manager a letter
instructing the bank to close all non-essential accounts with immediate effect
listing them by NUBAN numbers.
Make sure to
take a copy of the letter to be stamped received with date and give the account
Name, Number and Bank where your balance in the closed accounts should be
transferred. Once this is completed, the banks have no right to charge that
account again from date of receipt of your letter’’.
To ensure
that the campaign is successful, CAFON promises to provide online support
materials to assist consumers in enforcing their rights. ‘’We shall also
provide a link for consumers to list their closed accounts as we countdown to
our one million closed bank accounts target by Dec 31 2017. We expect all
aggrieved consumers to join the protest and mobilize others to take action too.
Collectively we can force a reduction of these obscene profiteering in the name
of multiple add-on bank charges. Enough is Enough’’.
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