BRAND REPORTBUSINESS
Bank Charges Outrage: Customers Decry Incessant Debits, Demand BCAN and CBN Action
Nigerian bank customers are raising the alarm over incessant, opaque debits—from SMS alerts to account maintenance and transfer-related levies—arguing that the cost of using the banking system is becoming unfair, discouraging and confusing. Many are urging the Bank Customers Association of Nigeria (BCAN) to escalate protections and push for tighter enforcement of the Central Bank’s rulebook on charges.
The Story So Far (Customer Sentiment, Summarised)
- Daily nickel-and-diming: Some customers report multiple small debits in a single day that aggregate to sizable sums monthly.
- Alerts vs. apps: Monthly SMS alert fees—even for customers who rely largely on mobile apps—are a flashpoint.
- Levy confusion: Several complain that electronic transfer levies and account maintenance fees are not only frequent but poorly explained on statements.
- Customer experience: Complainants say charge explanations are cumbersome—letters, forms and wait times—while debits are automatic and immediate.
Why This Matters (Beyond “Small” Fees)
- Trust in cashless policy: The promise of a digital, low-friction system collapses if customers feel nickel-and-dimed.
- Financial inclusion risk: Low and middle-income users may exit formal banking, preferring cash or informal rails.
- Credit ecosystem health: If balances erode through opaque charges, savings and transaction volumes shrink—hurting banks’ ability to intermediate credit.
- Reputational drag: A perception of unfair charging invites regulatory pressure and churn to banks/fintechs with clearer pricing.
The Rulebook—In Plain Language
- Banks are expected to disclose fees clearly, apply only authorised charges, and honour caps set by the regulator.
- Customers should be able to opt into/opt out of paid add-ons (e.g., SMS alerts) where an equivalent digital notice exists at no extra cost.
- Dispute and reversal processes should be simple, time-bound and transparent, with outcomes communicated promptly.
BRANDECONOMY note: We will track whether institutions adhere to these principles in practice—not just on paper.
BRANDECONOMY Analysis — What’s Really Driving Friction
- Opaque labels: Ambiguous descriptors on statements mask what a charge is for, and whether it’s recurring or one-off.
- “Set and forget” add-ons: Legacy SMS billing persists by default even when app notifications are sufficient.
- Posting & reconciliation gaps: Some core-banking setups batch-post fees, creating days with clusters of micro-debits.
- Poor fee education: Customers aren’t nudged with plain-English explainers at account opening or during fee changes.
- Inconsistent dispute handling: Escalation paths vary across branches; outcomes depend too much on manual intervention.
What Should Happen Now (30-Day Action Agenda)
For Banks (This Week)
- Publish a clear fee sheet in plain English on all channels (app/web/branch posters).
- One-click controls: Let customers toggle SMS alerts off (with app/email alerts defaulted on).
- Statement hygiene: Rename line items so any customer can tell what/why/how often at a glance.
- Auto-refund logic: Where duplicate/erroneous charges occur, trigger automated reversals within a defined SLA.
- Charge-change notice: Provide advance notices for any fee review, with an opt-out or product-switch path.
For BCAN (Within 14 Days)
- Launch a National Charges Watch—a simple intake form that logs bank, branch, fee type, and outcome.
- Publish a monthly dashboard: top pain points, reversal rates, average alert fees, time-to-resolution.
- Negotiate an industry Service Level Agreement (SLA) on disputes and SMS-opt-out transparency.
- Run consumer clinics (online & radio) to teach statement reading and escalation pathways.
For Regulators (Within 30 Days)
- Re-issue a “Know Your Charges” circular in plain language; require prominent display across all channels.
- Mandate opt-out rights for paid alert services where free digital notice exists.
- Standardise dispute SLAs and penalties for non-compliance (including customer compensation).
- Require banks to report fee-reversal stats and complaint outcomes quarterly.
Customer Action Pack — 7 Steps to Fight Wrongful/Unclear Charges
- Download e-statements (last 90 days). Highlight all recurring and ambiguous debits.
- Turn off what you don’t need: If you prefer app/email alerts, disable paid SMS in-app or via contact centre.
- Log a ticket in-app/web for each disputed charge; capture ticket ID and screenshots.
- Escalate after the bank’s SLA: write the Customer Experience Head/Branch Manager citing ticket IDs, amounts, dates.
- Request documented outcomes: reversal, partial reversal, or valid rule citation.
- Escalate to BCAN with your evidence if unresolved.
- Final escalation: File a formal complaint with the relevant consumer protection channel, attaching all correspondence.
Template subject line: “Complaint: Unauthorised/Unclear Debits — [Account Last 4 digits] — [Dates/Amounts]”
Data to Watch (BRANDECONOMY Dashboard)
- Average monthly alert fee per customer
- Debit count per 100 transactions (by product type)
- Dispute time-to-resolution (median days)
- Reversal rate (% of disputed charges refunded)
- Opt-out adoption for paid SMS alerts
We will collect and publish trendlines across these metrics to keep the industry honest.
BRANDECONOMY Verdict
Nigerians are not resisting fees; they’re resisting confusion and perceived unfairness. The fix is straightforward: clear pricing, easy controls, clean statements, fast reversals, and real accountability. Done right, banks preserve trust, regulators protect inclusion, and customers stay in the formal economy. Done poorly, the system will push users back to cash and informal rails—the exact opposite of national policy.
