OVERVIEW OF CIRCULAR DIRECTING BANKS AND OTHER FINANCIAL INSTITUTIONS TO ESTABLISH CUSTOMER COMPLAINTS HELP DESK.

INTRODUCTION

The Central Bank observed significant increase in the number of complaints received from customers of financial institutions most especially deposit money banks on various banking products and services.

The complaints range from allegation of excess charges, unauthorized deductions, excess commission – on – turn over (COT), other frivolous charges, frauds etc. The situation is a clear indication that customers are dissatisfied with the quality of services offered by and the absence of proper redress mechanism within the financial institutions.

To this end, it became necessary for banks and other financial institutions to adopt appropriate and effective mechanisms to address customers’ grievances reduce the spate of customer complaints, enhance public confidence and customer satisfaction.

THE DIRECTIVE

Banks are therefore directed by the Central Bank to establish customer help desks, the help desk should be managed by an officer not below the grade of Assistant General (AGM) and/ or senior banking officer of considerable years of experience in banking at the head office and branches respectively. And the Central Bank further directed:

a.       All deposit money banks, discount houses and other financial institutions to establish e- mail addresses dedicated to customers’ complaints.

b.      That complaints must first be filed with the Bank for resolution and copied to Director, Financial Policy and Regulation Department of the CBN.

c.       That such complaint should be resolved within 2 weeks from the date of receipt.

d.      That if unresolved, such complaint with evidence of action taken should be forwarded by the Bank within the 14 - day time frame to the Director, Financial Policy and Regulation Department and advise the complainant accordingly.

e.       All financial institution must submit monthly returns on customer complaints, the number resolved and number not resolved to Central Bank for intervention.

WHAT IS THE RATIONALE FOR THIS CIRCULAR

 In Nigeria, the indifference of the financial institutions in addressing consumer complaints and the lack of an effective report mechanism for financial consumers was breeding lack of trust and confidence in the financial institutions.

So I believe this Circular was issued among other reasons, to regulate the conduct of financial service providers, to engender trust and confidence in the financial system and ensure sound and stable financial system in Nigeria.

WHAT ARE THE KEY DELIVERABLES FROM THIS CIRCULAR

The immediate deliverables of the Circular include; the development of the consumer protection framework to serve as a policy document to address the issue of financial regulation as it affects the plight of the consumers of the financial product and services in Nigeria.

Another deliverable item is the deployment of consumer compliant management system. This is an automated system that is going to ensure a seamless complaints handling process. Although certain categories of complaints might take a longer time to resolve.

CONCLUSION

This regulation is clear, that financial institutions must resolve all complaints within two weeks of receiving such. And that any complaint that cannot be resolved within two weeks must be referred to the CBN in line with this circular.

Banks and other financial service providers are under the regulatory purview of the CBN, so the aim of the Circular is to ensure fair treatment and to inculcate ethical practices among financial service providers in their relationship with consumers..

YinkaOlaiya