Appraisal of the Legal Framework for Resolution of Bank Customer Complaints in Nigeria

Abstract

Banks have commonly been at the forefront of harnessing technology to improve their products and services because of the diversity of their customers as well as the sophisticated nature of their business. They have been using electronic and telecommunication networks to deliver a wide range of value added products and services. Despite the legislative developments in the area, the Nigeria banking industry is characterized by consumer exploitation. This includes unrealistic and hidden charges, unjustifiable deductions, Automated Teller Machine (ATM) deductions without dispensing cash to the customer, slow complaint handling and redress mechanisms etc. The researchers examined the legal framework for resolution of bank customer complaints in Nigeria. The research adopted the doctrinal methodology with a mixture of comparative, analytical and historical approach which was used to evaluate different resolution options available to a bank customer. The sources of data include both the primary and secondary sources. The major sources of data include legislations, case laws and subsidiary legislation made by the Central Bank of Nigeria. The CBN Consumer Protection Regulation failed to state the timeline within which complaints escalated to the CBN Consumer Protection Department may be resolved. The researchers recommended among others that the CBN Consumer Protection Regulation 2019, be amended to include a timeline for CBN Consumer Protection Department to resolve consumer complaints. The research also recommended the amendment of the CBN Consumer Protection Regulation 2019 by removing the Second Level Internal Review of consumer complaints by banks as same amounts to a waste of time and delay in justice delivery.