Service Disruption: FCCPC Warns Banks Against Customer Rights Violation

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a warning to financial institutions in Nigeria about the continued disruption of online banking services.

Tunji Bello, the commission’s Executive Vice Chairman/Chief Executive Officer, issued a statement on Tuesday expressing profound worry about the disruption that has prevented clients from accessing their cash, making payments, and carrying out vital transactions.

“The disruptions have negatively impacted millions and have serious implications for individuals and businesses alike,” according to a statement.

According to the commission, the Federal Competition and Consumer Protection Act (FCCPA) requires service providers to be transparent and communicate openly and accurately with their clients.

The FCCPA Act of 2018 is the primary act controlling consumer protection and competition regulation in Nigeria.

“The Federal Competition and Consumer Protection Act (FCCPA) of 2018 grants bank customers particular rights to ensure fair and accountable service delivery. The right to excellent service is a critical requirement that requires all service providers, including banks, to maintain acceptable levels of functioning and reliability.

“When banks are unable to retain access to key financial services, they may be failing to achieve this requirement, which might result in considerable financial hardship, loss of trust in the banking system, and economic damage.

“The FCCPA also protects consumers’ entitlement to fair access to goods and services, which is jeopardised when technical faults prevent customers from accessing their own cash. At a time when Nigeria’s economy is becoming more cashless, online banking is no longer a luxury but a need. Interruptions that prevent consumers from conducting transactions or obtaining vital cash are not only inconvenient, but they may also constitute a violation of this right, according to the statement.

It stated that during service disruption, banks must make their clients fully informed of the reasons, scope, and expected duration of any service disruptions.

“Unfortunately, many consumers are left in the dark, which causes dissatisfaction and makes customers feel unsupported.

“The FCCPA enables customers to seek remedy for services that do not meet required criteria. As a result, bank clients can seek remedy if they are harmed by inferior services.

“The FCCPC is currently reviewing the situation to determine if consumers’ rights to redress are being upheld and if more action is needed to enforce accountability,” it stated, adding that it is actively working with relevant regulatory authorities, financial institutions, and stakeholders to address these disruptions and ensure customer protection.

“The Commission will take all necessary action to ensure that the FCCPA’s provisions are respected.

“The Commission assures impacted bank clients that their concerns will be treated seriously.

“We urge banks and financial institutions to take swift action to restore services, prioritise customer support, and enhance communication to manage customer expectations transparently and responsibly,” according to the release.

 

 

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