Bank customers across the country complain about arbitrary charges on their accounts. Apart from charging Commission on Turnover, banks also charge customers for almost every withdrawal made via their current accounts. Some customers also complain that their banks charge them for using ATM cards in their banks' satellite branches. SAMUEL AWOYINFA, ANNA OKON, NKARENYI UKONU and KEMI LAWAL report
Many bank customers do not feel comfortable with what they refer to as 'arbitrary deductions' being made on their accounts each time they withdraw money from their accounts. Apart from the Commission on Turnover charges, they say some other deductions are being made by some banks.
A cross-section of people who spoke to Sunday Punch complained about the numerous charges they pay to banks. These customers allege that their banks are milking them dry.
One of them, the General Manager, M.S. Bakare & Sons Ventures, Mr. Mohammed Bakare, says there are some arbitrary charges like 'withdrawal on the counter' and 'withdrawal with ATM cards,' which should not arise because the banks also charge COT.
He states, "Many of these banks are ripping off their customers through these sundry charges. At my bank, I paid for ATM card and for every N20,000 withdrawal I make with the card, the bank charges N100. Even when the Federal Government asked banks to stop deducting N100 for ATM withdrawal, up till, November 25, the bank still charged N100 on my account as usual.
"As for COT, I pay N5,000 on every N1m withdrawal. Again, if one's cheque is returned for lack of confirmation from the account owner, it is another N5,000 penalty. Even when they have your telephone numbers, they will not call you for confirmation, just because of the N5,000 they want to deduct. Such deductions would be justified if it were a dud cheque.
"Furthermore, one still has to pay for a chequebook each time one exhausts a pack. And, depending on number of leaves, one may pay as much as N1,500 for a cheque book of 50 leaves. I believe this is rather exorbitant, considering the number of customers these banks have.
"The Central Bank of Nigeria must extend its banking reform to these areas and prevail on the banks to remove the COT and some — if not all — of these charges."
A civil servant, Mr. Akinyemi Olusegun, faults the banks for their failure to stop charging N100 on ATM withdrawals. He also decries 'the frustration' they put customers through whenever the ATMs don't dispense money and customers are debited. He blames the CBN and other monitoring agencies for failing to check the excesses of these banks.
He says, "It is annoying for banks to charge N100 for every N20,000 withdrawn via the ATMs, considering that in some banks, customers can only withdraw a maximum of N60,000 per day via the ATM. As far as I am concerned, these charges are exorbitant. It is even more annoying when the ATMs fail to dispense money and the customer's account is still debited. It takes at least seven working days to get the money returned to one's account.
"I can't forget this year's Workers' Day when I visited three different ATM points and none was functional. Despite the disappointment, my account was debited to the tune of N60,000. I had to enter into official correspondence with the bank before my money was returned 14 days later.
"All this arbitrariness is happening because the regulatory agencies are not doing their job. What is the job of CBN? What about the Senate and House committees on banking and finance? All these anomalies drive people away from saving money with these banks, and they will rather keep their money elsewhere. Regulatory authorities must wake up to their responsibilities."
The CEO, Centop Global Services, Mr. Innocent Ogah, also notes that banking in the country is not transparent, and says this provides a leeway for them to rip off their customers through all manner of deductions.
He states, "In every organisation, there are procedures. Banks are supposed to set out the charges and specify what they are meant for, even if it means posting them on the notice board for customers to read.
"For instance, the Power Holding Company of Nigeria's bills specify the amount charged for Value Added Tax and the amount charged for every unit of light one consumes. That way, you can do your calculations but banks don't do that, they just send you alerts notifying you of amounts deducted from your account. I think they also charge N5 for the alert.
"They are not transparent. In the past, they used to publish the cost per mail or per service; but now, they just leave everything blank. When customers are overcharged and they lodge a complaint, the banks apologise and reverse it, blaming it on internal problem.
"What happens to people who don't have a voice and cannot complain or who are too ignorant to understand? Even the N5 rate, when you calculate the millions of depositors that regularly pay all these unexplained charges, it amounts to a rip off."
A researcher, Mr. Olusegun Sogbamu, agrees that many Nigerian banks are known to fleece their customers. The amount might be small but over time, he says, it adds up.
His grouse, "I have noticed that whenever I make an online transfer from my current account to my savings account and I look through my statement, I will see that sums as little as three, four or five naira have been deducted.
"I really do not know what those charges are for and I do not think I will ever know because banks coin all sorts of terms to describe them.
"The other time, during an over-the-counter transaction, one of the tellers tried to convince me to deposit the money in my current account. I insisted on depositing it in my savings account. When I asked if I would be charged for intra-account transfer, he replied in the negative.
"When I told him my previous experiences, he said it was unusual. He then asked me to lodge a formal complaint by writing to the headquarters. For me, this was another way of spending N5 to trace 50 kobo. Why should the process to obtain money from me be a million times easier than the process to get a refund from them?"
An oil and gas consultant, Mr. Justice Obasogie, is equally miffed that some banks are yet to stop deductions on customers' accounts after ATM withdrawals. He also decries what he describes as "small, small deductions."
He says, "All these banks have small, small charges they deduct from customers' accounts whether one likes it or not. Some of these charges cannot be explained and it seems like the more money you have in your account, the higher they deduct.
"Though the N100 ATM fee was abolished over two weeks ago, many of them have refused to effect it in their operations. And woe betide you if you borrow from a bank; I can assure you that the hidden charges are even more than the interest you would pay."
The CEO, Merit Healthcare Ltd. and chairman, National Association of Industrial Pharmacists, Mr. Lolu Ojo, who has accounts with three major banks, complains about some deductions he experiences. "I experience exorbitant and unnecessary bank charges which include but not limited to interest rate, management fee, facility fee, insurance fee, legal fee, etc.
"I have made my complaints known to the appropriate quarters and all I get are flimsy excuses. They are also well known for delay tactics which wear one out till one gets tired of asking.
"Fortunately, since the CBN directive to banks to stop inter-banks ATM charge, I do not get charged any more. Almost all the banks I use are the same in terms of lack of support for entrepreneurial endeavour. The role of the bank as an engine room for industrial growth has long been abandoned. They lend only to themselves and their rich friends. In attitude and action, they care less whether you grow or not. The interest rate and ancillary charges are killing. We are practically working for the banks!," he states.
However, CEO, Zaris Fashion Academy, Ms Theresa Aggreh, says the bank she uses has not thrust any exorbitant charges on her and so she is not complaining.
She says, "So far, I have not experienced any exorbitant and unnecessary bank charges to warrant me making any complaints. Good enough, since the CBN directive to banks to stop inter-banks ATM charge, I do not get charged anymore."
An economic analyst and CEO, Spec Oil Nigeria Limited, Mr. Taiwo Ayodeji, also warns customers to be wary of the terms applicable to the type of accounts they are opening before putting pen to paper, so as to avoid unnecessary charges/deductions.
He explains, "Though bank charges are a norm globally, this does not mean that one cannot complain if there are arbitrary charges.
"Also, when you are opening an account with a bank, you need to know the terms and conditions of the account, but some people don't ask questions. They just go ahead and open the account. There are some current accounts on which a COT of N5 applies per a certain amount of money; just as there are some that charge lesser amounts.
"For those kinds of charges, there must be a minimum amount of money in your account that you cannot withdraw. When you have a bad cheque, the bank will charge you; when you overdraw your account, the bank will charge you; if you have an ATM card, they will charge you; when you withdraw with your ATM card from another bank's machine, your account will be charged as appropriate.
"One only hopes the regulatory authorities will wake up to their responsibilities and stop the arbitrary charges."
On how to address these numerous charges, the spokesperson of the Central Bank of Nigeria, Mr. Ugochukwu Okoroafor, encourages customers to channel their complaints to the Consumer Protection department of the CBN.
In a text message sent to our correspondent, he said, "They should send their complaints to our Consumer Protection Department. It is one of the new departments set up by the CBN."
