Consumer Protection Department Frequently Asked Questions (FAQs)
Q1: Why did it become necessary to establish a
Consumer Protection
Department in the Central Bank of Nigeria?
The Consumer Protection
Department (CPD) was established in April
2012 in furtherance of one
of CBN's core mandates to “promote a
sound financial system in
Nigeria as enshrined in the CBN Act 2007.
The CPD was established to
develop and implement an effective
consumer protection
framework to promote consumer confidence in
the financial system.
Q2: What are the functions of the Department?
The Department performs three primary functions,
namely:
Complaints Management:
This involves resolving consumer
complaints against
financial institutions under the purview of the
CBN;
Market Conduct &
Development: This is to entrench fair and
responsible conduct
amongst the financial institutions in relation to
their customers;
Consumer
Education/Financial Literacy: This is to promote and
disseminate financial
education and awareness amongst consumers
and prospective consumers
for the enhancement of their economic
well-being.
Q3: What is the expected impact of the Consumer
Protection
Department?
A major expected impact is
the entrenchment of fair and
responsible business
conduct amongst financial service providers as
well as the existence of a
consultation and feedback mechanism to
periodically determine the
extent of consumer satisfaction.
Another expected impact is
a general improvement in financial
capability which would
ultimately result in an increase in
participation in the
formal financial system amongst consumers.
Although there is the
likelihood of an increase in the level of
consumer complaints
against financial institutions due to the
growing awareness of a
redress mechanism in the CBN, the
Department will continue
to ensure fair and responsible market
conduct among the
financial institutions under the purview of the
CBN. In the long-run, this
would lead to a reduction in the number
of consumer complaints.
2
Q4: What is Financial Literacy?
Financial literacy means possession of
knowledge and skills by
individuals to manage
financial resources effectively to enhance
their economic well-being.
It also includes knowledge and
understanding of financial
products and services, the service
providers, the terms and
conditions and the benefits derivable from
accessing these financial
products and services.
Q5: How does the Consumer Protection Department intend
to
succeed in achieving its financial literacy objectives?
The financial literacy
framework articulates a multi stakeholder
approach to the delivery
of various financial education programmes
across different target
groups. Several programmes are being
developed and implemented
on a continuous basis with the active
collaboration of other
stakeholders to reach the target groups. For
instance, the Department
is collaborating with relevant agencies
towards introducing
financial education into the educational
curriculum at all levels.
The Department is also partnering with the
media for mass education
and enlightenment as well as organizing
Mentoring Programmes in
Primary and Secondary Schools in Nigeria.
Q6: What are the benefits of becoming financially
literate?
A financially literate
person is empowered with knowledge and skills
to evaluate financial
products and services in order to make
informed decisions. Such a
person would ultimately become capable
and confident in managing
their financial matters. This would
ultimately promote greater
participation in the formal financial
system which is crucial to
the economic growth of the nation.
Q7: What is Financial Inclusion?
Financial Inclusion means
enhancing access and usage of financial
services at affordable
costs to the vast majority of disadvantaged
and vulnerable low income
groups; it is the availability and
accessibility of financial
products and services to the entire
population without
discrimination.
Q8: Why is Financial Inclusion Important to Nigeria?
Financial Inclusion has
the capacity to unlock the huge potential of
the large population of
Nigerians that are excluded from the formal
financial system.
Providing them access would enable the excluded
take advantage of the
opportunities the formal financial system
presents and ultimately
promote economic growth and
development.
Q9: What is the relationship between Financial
Literacy and Financial
Inclusion?
Financial Literacy is a
prerequisite for financial inclusion. Even if all
necessary structures are
put in place to make financial products and services
available and affordable,
it is only the possession of knowledge and skills that
can engender trust and
confidence in the use of these products and services. It
is this knowledge
(Financial Literacy) that would empower the financially
excluded to come on board
the formal financial system. Financial Literacy
enhances Financial
Inclusion.
Q10: What significant milestones has the Consumer
Protection
Department achieved since its inception?
Some of the achievements
of the Department include:
i. Establishment of
Help-Desks in Banks to manage customer
complains; ii. Review of the Guide to Bank
Charges (GBC); iii.
Compliance Examination of Banks to ensure
adherence to regulations;
iv. Development of the Financial
Literacy Framework;
v. Conduct of Financial
Literacy Sensitization and Awareness Workshops;
vi. Stakeholder Engagement
to obtain their buy in on the importance of
collaboration to drive
Financial Education in Nigeria; vii. Financial Literacy
Mapping Exercise; viii.
Establishment of the Financial Literacy (now
Financial Inclusion)
Governance Structures; ix. Conduct of
Financial
Literacy Baseline Survey
to determine the
Financial Literacy levels of Nigerians;
x. Development of
Financial Literacy Publications; xi.
Development of the
Consumer Protection Framework;
xii. Collaboration with
numerous stakeholders to drive consumer protection in
financial institutions;
xiii. Development of
Financial Education Curriculum for Basic and Senior
Secondary Schools;
xiv. Commenced of Targeted
Financial Education Programme for MSMEs and
Farmers across the Six
Geopolitical Zones of the Country
Q11: Does the Consumer Protection Department treat
complaints
against all financial institutions in Nigeria?
The Consumer Protection
Department treats complaints against
Financial Institutions
regulated by the CBN.
Q12: What is the complaint resolution process in the
Consumer
Protection Department?
Customers are required to
forward their complaints in writing firstly
to their Banks/Other
Financial Institutions (OFIs). If the Bank/OFIs
fail to respond or resolve
the complaint satisfactorily, the customer
could escalate the matter
to the Consumer Protection Department
of the CBN.
Q13: How does one escalate an unresolved case to the
CBN?
The Complainant should forward his/her
complaint in writing to:
The Director, Consumer
Protection Department,
Central Bank of Nigeria,
Abuja
OR
Send an Email to: cpd@cbn.gov.ng
Q14. In monetary terms, how much was refunded by banks
to their
customers as a result of the intervention of the
Department?
A total of NGN 44.7
billion and USD15.8 million have so far been
refunded to customers that made claims against
banks as at the
end the December 2016.
Q15: Are these refunds kept in any special fund?
Refunds to customers are
credited back into their accounts by the
Banks or OFIs as the case
may be. No part of these funds is kept in
any special account or
fund with CBN.
Q16: How long does it take the Consumer Protection
Department to
resolve a complaint brought against a Financial
Institution?
This depends on the
complexity of the complaint in question. Based
on the provisions of the
Help-Desk Circular, Banks are required to
resolve complaints from
their customers within 2 weeks. However,
complaints on excess
charges and loans MUST be resolved within 30
days.
Q17: What is the CBN doing to address
unauthorized/excess charges by
banks?
The CBN has developed a
Consumer Protection Framework arising
from which will be
guidelines to regulate how banks and other
financial institutions
relate with their customers
The CBN in collaboration
with banks, industry experts, practitioners,
consultants and relevant
stakeholders also developed guidelines on
permissible charges known
as the “Guide to Bank Charges” (GBC).
The Department also
conducts periodic checks on banks/OFIs to ensure
adherence to its various
policies and guidelines.
Q18: What is the CBN doing to address problems bank
customers
encounter as a result of using ATMs?
Banks are required by the
CBN to resolve all ATM dispense errors
within 72 hours of
occurrence. The Department also intervenes
where customers report
other issues encountered as a result of
using ATMs that are not
resolved by the banks. Where CBN
establishes genuine claims
against any bank, such a bank is
compelled to make refunds
to the affected customers.
Q19: Who are bank customers?
Generally, any person who
has a legal relationship (usually by way of
maintaining an account)
with a bank is regarded as a customer of
such a bank. There are
however circumstances where a person may
be treated as if he/she
were a customer, for instance where such a
person has subscribed/
enjoyed service(s) of the bank for a
consideration.
Q20: What is the scope of the consumer sensitization
programme/campaign?
The aim of the consumer education programme is
to bridge the
knowledge gap between
providers of financial services and
consumers such that the
consumers are equipped with the
knowledge, skills and
ultimately confidence to deal with financial
institutions from an
informed position.
Q21: How can the CBN assist bank’s customers who do
not have
acceptable means of identification to participate in
the formal
financial system?
As part of the CBN’s
efforts to simplify the account opening process
and ensure Nigerians are
not left out of the financial system, the
Bank issued a policy
directing all Commercial banks to adopt the 3
tiered Know- Your-Customer
(KYC) scheme which makes account
opening requirements more
flexible and easier to achieve.
Q22: Does the CBN compensate victims of “Wonder
Banks”?
The CBN is at the
forefront of the fight against “Wonder Banks” in
collaboration with the law
enforcement agencies. Where there are
reported cases of
suspected “Wonder Bank” Operators, thorough
investigations are
conducted and the operators prosecuted.
However, the CBN during
its sensitization and awareness campaign
drive is alerting the
public to beware of these kinds of unlicensed
organizations and schemes.
Q23: Is it right for bank customers to pay charges
when they make
payments through the POS? If yes, how much is the
charge?
Bank customers are not required to pay ANY
charge for using Point
of Sale (POS) terminals.
Q24: Why are the ATMs not dispensing N500, N200 and
N100 notes? Is
it a policy issue?
Ans: There is no CBN
policy that prevents banks from dispensing any
denomination through ATMs.
However, where customers require
lower denominations, the
banking halls at CBN Branches nationwide
are open for exchange.
Not all ATMs accept cash
deposits. Customers are advised to contact
the customer service desks
of their banks for guidance on how to
make deposits using ATMs.
Q26: What are the measures put in place to protect
users of mobile
money/banking in the event of loss of their phones?
The money in customers' account is not in any
way affected by the
loss of their mobile
phones, provided customers’ confidential
information are not
compromised.
Q27: What effort is the CBN making to ensure that ATM
transactions
are carried out in conducive environments?
Banks are required to ensure that certain
standards are met in
deploying ATMs,
particularly those located outside the premises of
banks. Some of the
requirements include: security, illumination,
protection from sunlight,
privacy for users, etc.
Q28: Is a complainant expected to pay CBN to access
its redress
system?
The CBN does not charge ANY fees to access its
redress mechanism.
What is required however
is that the customer must first lodge the
complaint with his/her
Financial Institution. Where the financial
institution fails to
address the complaint or where the customer is
not satisfied with the
outcome of the resolution, he/she can then
escalate the complaint to
the CBN by writing to:
The Director,
Consumer Protection
Department,
Central Bank Nigeria,
Abuja
Or
Send an email to:
cpd@cbn.gov.ng attaching documentary evidence.
Q29: How does the CPD deal with petitions that are
already before the
law courts or law enforcement agencies?
The CBN does not entertain
petitions that are pending before the
courts or under
litigation. However, the CBN could receive petitions
for cases under
investigation by law enforcement agencies like the
Police, EFCC, etc or where
matters are referred to it by the courts.
Q30: Why do banks charge customers N65 for using
Automatic Teller
Machines (ATMs) that do not belong to them?
This N65 is a service charge approved to be
debited to a customer’s
account after the third withdrawal on another
bank’s ATM in
a particular month. This
charge is not applicable on the
first, second and third
withdrawals in a month, but N65
will be debited to the
customers’ account on each
withdrawal after the third
one for that particular month.
Q31: What is Financial Inclusion Strategy?
The Financial Inclusion
Strategy is a national strategy aimed at
reducing the number of
people who do not have access to basic
financial services (financially excluded) from
46.3% in the year 2010
to 20% by the year 2020.
The strategy was launched by the
President on 23rd October
2012.
Q32: What is the CBN doing to reduce the number of
complaints
lodged by customers against banks?
The CBN is continually reviewing its policies
to address any
identified gaps to prevent
banks from taking undue advantage of its
customers. This is also
supported by periodic compliance examinations
of banks to detect areas
of infractions and address same holistically.
The CBN also develops
different strategies to educate members of the
public on financial
services and financial service providers so as not to
be shortchanged.
It has also developed the
Consumer Protection Framework which will
give rise to regulations
and guidelines on how banks and other financial
institutions will relate
with their customers.
Q33: How can I lodge a complaint against my bank?
You can walk freely into
any branch of your bank and submit a
written complaint. Ensure
that you obtain an acknowledgement
copy of the submitted
complaint from the bank for your records.
You can also contact the
bank via its telephone lines and their official email
addresses to lodge your
complaint.
Q34: What are my rights as a customer of a
bank/Financial Institution
licensed by the CBN?
As a bank customer, you
have the following rights amongst others:
• Right to basic financial
information
• Right to choice of
financial service
Consumer Protection
Department
Frequently Asked Questions (FAQs)
10
• Right to good and
quality services
• Right to decline from
any service with no clear cut information
In addition the customer
has the followings responsibilities when
operating a banking
relationship with a bank.
• Duty of Knowledge and
understanding
• Duty of financial
obligation
• Duty to protect
instruments and information
• Duty to provide factual
information and not to mislead the bank
• Duty to report suspected
fraud or error
• Duty of personal safety
and safety of assets
Q35: What is the relationship between budget and
savings?
Budget is a planned expenditure or expected
income over a period
of time, usually one year;
on the other hand, savings is that part of
income not spent on
consumption expenditures.
Q36: What are “Wonder banks”?
These are private
organizations that operate by collecting money
from their customers with
the promise of paying high “too good to
believe” returns on
investments. These banks are not licensed by
the CBN and also not
insured) by the Nigeria Deposit Insurance
Corporation (NDIC).
Q37: How can the public access the =N=220 Billion MSME
Funds?
Apply for the Fund through
a Microfinance Bank, Finance Company,
Financial Cooperatives or
NGO-MFI.
Q38: When money is saved in a bank and the bank goes
into distress,
what happens to the savings?
The NDIC insured limit is
currently a maximum of N500,000 for each
depositor in respect of
deposits held in each insured commercial
bank and N200,000 for each
depositor in Microfinance Bank and Primary
Mortgage Institutions in
same right and capacity.
Q39: Why is it difficult to link BVN to all accounts
operated by a
customer?
You can easily approach any bank or the bank
with which your account is
domiciled to link your BVN
to any other account opened with the same
identity and KYC data.