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FCCPC Warns Banks Against Continuous Disruption in Online Banking Services

The Federal Competition and Consumer Protection Commission (FCCPC) has warned financial institutions against continuing disruption in online banking services across Nigeria.

A statement from the commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, expressed deep concern regarding ongoing disruptions that have hindered customers from accessing their funds and carrying out essential transactions.

“The disruptions have negatively impacted millions and have serious implications for individuals and businesses alike,” the statement said in part.

The commission emphasized that service providers are required by the Federal Competition and Consumer Protection Act (FCCPA) to maintain transparency and communicate openly and accurately with customers.

The FCCPA Act 2018 is the primary statute governing consumer protection and competition regulation in Nigeria.

“Under the Federal Competition and Consumer Protection Act (FCCPA) 2018, bank customers have specific rights to guarantee fair and accountable service delivery. A key provision is the right to quality service, which mandates that all service providers, including banks, maintain acceptable levels of functionality and reliability,” the statement noted.

“When banks cannot maintain access to essential financial services, they are arguably failing to meet this standard, potentially leading to significant financial hardship, loss of trust in the banking system, and damage to the overall economy.”

The FCCPA also grants consumers the right to reasonable access to goods and services—a principle compromised when technical failures impede customers’ access to their funds.

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“At a time when Nigeria’s economy is increasingly cashless, online banking is no longer a mere convenience but a necessity. Interruptions that impede consumers from engaging in transactions or accessing essential funds are not only an inconvenience, but they may also be a violation of this right,” the statement added.

FCCPC Warns Banks Against Continuous Disruption in Online Banking Services

The commission stressed that during service disruptions, banks must keep customers informed about the causes, scope, and anticipated duration of any issues. “Regrettably, many consumers are left in the dark, a situation that increases frustration and leaves customers feeling unsupported.”

The FCCPC allows consumers to seek redress for services that do not meet necessary standards. Therefore, bank customers can pursue redress if adversely affected by substandard 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,” the statement said, adding that it is actively collaborating with regulatory authorities, financial institutions, and stakeholders to address these disruptions and protect customers.

“The Commission will pursue all necessary actions to ensure the protections of the FCCPA are upheld. We assure affected bank customers that their concerns are being taken seriously. We urge banks and financial institutions to take swift action to restore services, prioritize customer support, and enhance communication to manage customer expectations transparently and responsibly,” the statement concluded.

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