Another Post

in #nigeria7 years ago

So a certain Kingson Elendu Elendu made a post on LinkedIn that I think I should share.

It was talking about excess charges from banks here in Nigeria.

Here goes:

"Many times in Nigeria, when customers bother to review their accounts, they observe “small amount” say, N4.00 over-charge. They do not request for reversal as the process and logistics of resolving such complaints often necessitate spending more than the N4.00. So, they leave the money for the banks. Just image a monthly N4.00 excess charge per customer in a bank with customer strength of say, 2,000,000. That can be significant; the banks know and capitalize on it. The regulators also know; and they close their eyes.

If, for instance, a customer who borrowed money from a bank at say, 21% per annum interest rate is discovered to have been over-charged by the bank with say, N200, 000, the subsisting policy of the Sub-Committee, requires the bank to refund the money to the customer at average Treasury Bills (TB) interest rate plus 2% within the period the over-charge was committed. So, if average TB rate is 12%, effectively the bank will refund at 14% (12+2). Meanwhile, the customer was charged 21%. Consequently, the customer suffers 7% (21-14) which becomes a gain to the bank-that is, for violating regulations. As the bank ultimately profits from that type of policy, nothing will compel it to stop the practice."

Thank you for reading this.

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Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://guardian.ng/opinion/factors-that-motivate-and-sustain-excess-bank-charges/

Detan! You have been nabbed!!

cc @trillex

Lmfaoooooo!!!! 😭😂😂😂😂😂 deiny is a bastard!!! @michelsantino