Banking Rights: Rights Of Customers

By Ubong S. Ebong Esq. -
On this episode, let's talk about the rights of persons in relation to their banks. In other words, what rights accrue to you as a customer of your bank. I'm just going to highlight a few points so for more details consult your lawyer.

The first right we are going to talk about is your right to privacy. This particular right is actually constitutional. What it entails is that as a customer of a bank, you have the right to be afforded privacy by your bank with regards to the contents & transactions of your account. There have been multiple tales of bank staff disclosing information about clients' accounts to outsiders & this is totally illegal. The only legal means of obtaining information about a person's bank account is through a court order.

The second right I want to talk about is the issue of unauthorized transactions. This could be in the form of a withdrawal or transfer or other transaction from your account without your authorization. Such acts amount to unlawful conversion because as the owner of your account, your account should not be meddled with without your permission. However, like the first right we discussed, a valid court order & sometimes, provisions of laws can suspend this right. For instance, through successful garnishee proceedings a court can give orders to freeze & withdraw money from your bank account without your permission in order to settle your judgement debt.

Thirdly, you have the right not to be subjected to unjustified charges on your account. It is settled that banks are lawfully allowed to make several charges in exchange for their services, but it is unlawful for them to make charges beyond the permissible limits. The basic things you should know in relation to these charges are:
1) you have the right to ask questions & be adequately informed about the nature & details of deductions made from your account as charges or whatever,
2) you have the right not to be overcharged above the limits set by CBN. CBN, as the regulatory body in charge of banks & other financial institutions, makes rules & set limits from time to time which must be strictly adhered to by these banks.

Fourthly, you have the right to a reversal of funds within a reasonable time in the event of a failed or erroneous transaction. The new CBN circular of 13th September 2018 makes detailed provisions on this. There's need to draw a distinction between different kinds of scenarios:
1) where you try withdrawing money from an ATM & you r debited without getting paid. Here you have the right to get your funds reversed within a reasonable time. What amounts to reasonable time is a question of fact to be determined by the circumstances of your case. Usually banks reverse within 24hours but if they don't then make a formal complaint. If after making your complaint, they delay in refunding your money within a reasonable time then you have the right to sue.
2) Where you make a transfer via any of the electronic platforms & the transaction fails but you have been debited. Under the new CBN regulations, you are entitled to a refund within 24hours by your bank.
3) Where the transfer is successful, the beneficiary is entitled to be credited by his/her bank within 4minutes once his/her bank gets the funds.
4) Where by virtue of the bank's own error (due to wrong account number, or wrong amount, or duplication) money is transferred contrary to your instructions, notify your bank who will then contact the recipient's bank & within 14days your money should be reversed. If sufficient funds are available in the recipient's account then once your bank notifies his/her bank the money will be refunded within 1day, with or without the recipient's consent. If the recipient has already used the money, he/she will be asked to refund the money within 7days otherwise he/she will be added to a watchlist.
5) Where by your own mistake, you erroneously transfer money (whether a wrong amount or to a wrong account number) then quickly report to your bank. If the recipient of the transfer is known to you, your bank will encourage & assist both of you to resolve things amicably. Where the recipient is unknown to you, both your bank & the recipient's bank will mediate between you & the recipient for a period of 2weeks to ensure the money is returned to you. Where the recipient agrees to refund it, the money will be refunded once consent is granted. But where the recipient refuses to grant his/her consent for the refund, then after the expiration of the 2weeks of mediation the recipient will be added to a watchlist & may also be reported to the relevant law enforcement agency.

Now to the fifth right, you have the right to be informed about details of your account whenever you so demand. This is why banks give periodic bank statements showing details of all transactions on your account within the period in view. But your request for information must of course be reasonable in line with the rules & policies of your bank.

As a bonus, you also have the right against defamation & false imprisonment. In the course of a person's business dealings, the need may arise for your bank to give statements or reports about your financial capacity. Sometimes your prospective business partners may require this as a precondition before entering into a business relationship with you. Sometimes it could even be that your bank due to one reason or the other has to make a statement about you to the police. In such situations, your bank is under duty to give a honest report about you as any untrue or derogatory statement could amount to defamation &/or fraud.

On the issue of false imprisonment, I have already talked about this in details earlier. But for the purpose of today's discussion let me just add that your bank cannot restrain you within their premises without lawful justification. It is not enough that they have a reason to restrain you, but such reason must be recognized by law as legitimate. Similarly, your bank cannot also initiate your arrest without lawful excuse. A lawful excuse for instance could be when a person presents a forged cheque which would give the bank the right to detain you & hand you over to the police.

Before I conclude, I feel it's important to mention that your relationship with your bank is mainly contractual. As such you are bound by the terms & conditions attached to your account which you have consented to upon signing your account opening form (so for those of you that don't read the terms & conditions before signing, you may have just left your fate & the fate of your money at the mercy of your bank). Where any issues arise between you & your bank (including the ones I have talked about today), it is advised that you first report to the customer care unit of your bank to resolve the issue internally. Where that doesn't help, then consult your lawyer to help you get redress in court.

#KYR


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