FCCPC warns banks against online service disruptions

The Federal Competition and Consumer Protection Commission, FCCPC, has issued a stern warning to banks over recurring disruptions in online banking services that have hampered customer access to funds and essential financial transactions.

In a statement from FCCPC’s Executive Vice Chairman, Tunji Bello, the commission highlighted that these interruptions have left millions unable to complete basic financial activities, impacting individuals and businesses nationwide.

According to Bello, the FCCPC Act of 2018 protects customers’ rights to quality, reliable service and allows consumers to seek redress if services fail to meet essential standards. He emphasized that by denying access to fundamental banking services, banks risk violating consumer rights, which could erode trust in the financial system and harm the broader economy.

Bello urged banks and financial institutions to act promptly, both to restore services and to improve transparency through clear communication with customers about the nature and expected resolution timeline of any disruptions. The FCCPC is currently evaluating the situation and considering further actions to enforce accountability and protect consumer rights.

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”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 FCCPC 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.

”During service disruption, it is essential that banks keep their customers fully informed about the causes, scope, and anticipated duration of any service issues.

”Regrettably, many consumers are left in the dark, a situation that increases frustration and leaves customers feeling unsupported.

”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,” he said.

The commission is collaborating with other regulatory bodies and stakeholders to address these ongoing service issues, aiming to uphold fair and responsible banking practices across the sector.

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