FCCPC to banks: Service disruption violates consumers’ rights

The Federal Competition and Consumer Protection Commission (FCCPC) says the online banking service disruptions violate consumer rights.

In a statement on Tuesday, Tunji Bello, executive vice-chairman (EVC) of FCCPC, said the disruptions, which have hindered customers from accessing their funds and carrying out essential transactions, have negatively impacted millions.

Bello added that the disruptions have serious implications for both individuals and businesses.

According to the EVC, interruptions that impede consumers from engaging in transactions or accessing essential funds are not just inconveniences, they may also be a violation 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.”

Bello said during service disruptions, banks must keep their customers informed about the causes, scope, and anticipated duration of any issue.

‘CUSTOMERS CAN SEEK REDRESS’

The EVC expressed regret that many consumers are often left uninformed, which heightens frustration and leaves them feeling unsupported.

Bello said consumers can seek redress and FCCPC is reviewing the situation to determine if consumers’ rights to redress are being upheld.

“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.

“The FCCPC is currently reviewing the situation to determine if consumers’ rights to redress are being upheld and if more action is needed to enforce accountability.”

He also said the commission is actively working with relevant regulatory authorities, financial institutions, and stakeholders to address the service disruptions and ensure the protection of customers.

Bello added that the FCCPC will pursue all necessary actions to ensure the protections of the FCCPA are upheld.

The EVC assured affected bank customers that their concerns were being taken seriously and urged banks and financial institutions to act swiftly to restore services, prioritise customer support, and enhance communication to manage customer expectations transparently and responsibly.

Recently, some commercial banks have carried out system upgrades as they move to improve their services.

However, the impact of the upgrades on Nigerian banks has been multifaceted, affecting various aspects of banking operations and customer experience.

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.

Following the development, customers continue to lament their inability to access the financial institution’s mobile app.

On October 22, the bank alerted its customers that it had successfully concluded the system upgrade.

Similarly, Guaranty Trust Bank (GTB), on October 9, notified its customers of an impending system upgrade, which will result in temporary service disruptions.