FCCPC Finally Addresses Service Disruption After Zenith, GTB, Others Share Latest Update
- The FCCPC has stated that service disruption is a result of violation of consumer rights online banking services
- It stated that the disruptions have had a detrimental effect on millions of customers and the ability to make transactions
- According to the FCCPC's executive vice-chairman, the disruptions have significant effects on both individuals and businesses
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The disruptions in online banking services are a violation of consumer rights, according to the Federal Competition and Consumer Protection Commission (FCCPC).
Source: Getty Images
The FCCPC's executive vice-chairman (EVC), Tunji Bello, stated in a statement on Tuesday that the disruptions have had a detrimental effect on millions of customers by making it difficult for them to access their cash and complete necessary transactions.
FCCPC's executive vice-chairman Bello stated that the disruptions have major ramifications for both people and companies in a The Cable report
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Recall that on September 29, Zenith Bank informed its customers via various channels that its app would be automatically updated to a new version on October 1.
Similarly, Guaranty Trust Bank (GTB), on October 9, notified its customers of an impending system upgrade, which will result in temporary service disruptions. Other banks have also churned out messages to customers telling them about their scheduled maintenance.
Customers of the affected banks complaints of inability to make transactions during the period.
What FCCPC said
The EVC asserts that disruptions that prevent customers from conducting business or obtaining necessary funds are not just inconvenient but may also constitute a breach of their rights.
“Under the Federal Competition and Consumer Protection Act (FCCPA) 2018, bank customers have specific rights to guarantee fair and accountable service delivery,” Bello said.
“A key provision is the right to quality service, which mandates that all service providers, including banks, maintain acceptable levels of functionality and reliability.
“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 further grants consumers the right to reasonable access to goods and services—a principle that is compromised when technical failures impede customers’ access to their own funds. 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.
“Service providers are required by the FCCPA to be transparent and communicate with customers in an open and accurate manner.”
What banks musk do
Bello stated that banks must notify their clients of the reasons, extent, and expected duration of any issue during service interruptions.
The EVC apologized for the fact that many customers are frequently uninformed, which exacerbates their annoyance and makes them feel abandoned.
According to Bello, customers have the right to seek redress, and the FCCPC is examining the matter to ascertain whether or not those rights are being respected.
“The FCCPA allows consumers to seek redress for services that do not meet the necessary standards. As such, bank customers can seek redress, if they are adversely affected by substandard services,” Bello said.
Fraudsters steals N42.6bn from Nigerian banks
Legit.ng reported that in the second quarter (Q2) of 2024, Nigerian banks lost N42.6 billion to fraudsters, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) had said.
In the second quarter (Q2) of 2024, Nigerian banks lost N42.6 billion to fraudsters, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has said.
He stated that the 2024 AMMBAN survey found that more than 300 local government areas in Nigeria lack bank branches, ThisDay reported.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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