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CBN seeks timely resolution of bank customers’ complaints

By BusinessNews Staff on July 29, 2014

The Central Bank of Nigeria (CBN) has stressed the need to put in place adequate measures to ensure that bank customers’ complaints are timely resolved.

The central bank stated this in a letter titled: “Exposure of Draft
Recommendation for Time Bar on Consumer Complaints,” addressed to
banks and other financial institutions.

Specifically, the central bank disclosed that a time bar of six years from the date a transaction occurs had been recommended, after which complaints against financial services producers would not be entertained.

But the proposed limit does not preclude the right of a complainant to
seek redress in the court of law.

It stated that in implementing its consumer protection initiatives, it had observed that timely resolution of complaints from consumers against financial services producers (FSPs) within the regulated timeline had been a major challenge for the banks, FSPs and consumers.

Amongst other issues, the CBN stated in the letter signed by its Director, Consumer Protection Department, U.A. Dutse, a copy of which was posted on its website, that availability and access to supporting documents were identified by stakeholders as major set back for the timely resolution of complaints.

“The CBN identified the need to have in place, adequate measures to ensure that consumers are diligent in their financial transactions by making prompt claims on transactions as they occur, to ensure FSPs are able to resolve same with the required resources.

“Accordingly, vide a letter dated November 1, 2013, stakeholders were
requested to make submissions on the desirability of placing a time bar for managing complaints in the industry,” it added.

Furthermore, the central bank noted that pursuant to the inputs received from stakeholders a study of what obtains in some other jurisdictions, some regulatory agencies in Nigeria and the provisions of relevant Nigerian legislations in respects of document retention and commencement of legal action was conducted.

“A time bar of six yeas from the date of transaction was recommended,
after which complaints against FSPs would not be entertained. The
proposed limit does not preclude the right of a complainant to seek
redress in the court of law.

“In line with the tradition of the CBN to carry its stakeholders along as developments evolve, we are exposing the above recommendation for
your comments,” the regulator added.

[This Day]

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