BANK CHARGES: A FRAUD OR A FEE?

I would like to crave the readers’ indulgence to permit me express my opinion in the simplest language as a layman who does not understand the workings, laws and rules of the financial institutions. Having had a brief stint as a marketer in one of the new generation bank I can confidently analyze the drama associated with customer’s complaints whenever issues of spurious charges and illegal deductions rears its ugly head while in the employment of the bank. As a staff of the bank in those ‘BANK TARGET’ era of banking operations, not many of us really understand the pain and emotional difficulties experienced by bank’s customers whenever they complain of deductions as miserly as N100, but five years down the lane I was out of that corridor of the financial institutions and I know where the shoe really pinches. I can tell the values of peanuts and crumbs as an entrepreneur, I know what it cost to gather resources, to build funds in your bank account and ultimately smile home at the end of every project.

Consequently, there are some bad times for entrepreneurs when N100 will make a difference and save an ugly situation such as dishonoring a cheque as a result of deductions never envisaged. I have witnessed many a times customers closure of their bank account because some charges the bank could not explain were carried out on the aggrieved customer’s account. Whether the bank apologizes or return the funds back to the account will still not hold back the ill feelings associated with these manipulations by the banks. My wife had an experience with her bank sometime on a Saturday in April 2014, she attempted to withdrew money from FCMB ATM Akute Ogun State,and
there was an ATM dispense error whereby her account was debited and money was not dispensed, she lodged a complaint at her bank, First Bank Akute to be precise the following Monday, alas! She was told the dispense error will take minimum of two weeks to get reversal for the transaction in question; one of the operation staff even asked us why she opted to use other banks’ ATM instead of FIRST bank ATM machines. While at the bank with my wife that very day, we met so many other customers at the bank and they had come for the same issue, some even claimed to have had their cash trapped for months unresolved. I see this as a way of unnecessarily holding peoples’ fund in the banks kitty and it’s a subterfuge that must be abolished. I immediately requested for an A4 paper right there, carefully drafted a complaint letter and requested for the names of officers we had interacted with, I asked that the letter be time-stamped and a copy given to us as evidence for the issue at stake. To our greatest surprise the money was credited back to the account within four working days while the other customers are still waiting endlessly to have their money back in their accounts. Invariably, if we had left the matter like every other agitated person it would have been treated just like any other person.

Surprisingly, in the month of October 2014 I have witnessed twice of such backyard pilfering by the banks on my account. Firstly, I made use of my Gtbank Debit Mastercard card on an FCMB ATM at Splash eatery and bar outlet in Sangotedo Lekki Lagos, the ATM machine actually dispense the cash of 10K requested for but went on to seize my card. I lodged a complaint at the nearest GT Bank at Ajah branch about the ugly scenario; I was told by a customer service officer that I need to make a request for a new card because the old card would have been perforated when returned by FCMB.I promptly asked for a request form but I was told my account will be debited for N1,000 plus 5% VAT. This does not only come as a surprise but also another technical fraud, some questions begs for answers here:

1. How does the bank determine the parameter for charging my account for the card trapped?
2. Since the old card is not expired, why is the bank printing another card?
3. Why is the other bank perforating the card when it can be sent back to the customers’ bank as was the case before?
4. Do bank need to charge as much for a card re-issue even when new card cost the same as initial card?
5. What is the role of CBN in this matter of financial discrepancies and illegal bank charges?
6. Do we have a consumer protection agency that will safeguard our collective interest as banks customers?

Secondly, on Friday 26^th Sept 2014 I attempted a withdrawal at UBA branch at Palm-Grove on Ikorodu road Lagos, using the new re-issue Gtbank mastercard, the ATM debited my account for N7,000 and another debit of N65,thereafter a reversal alert pop-up on my phone but the bank’s security officer asked me to use the second machine because somebody was attending to the machine that debited me in the first instance, going by the rules of using other banks ATM’s, the charges only commences after the third withdrawal but UBA debited my account for N65 twice even when it was ascertained that the machine had technical issues.

Similarly, the last straw that broke the camel's back was a scenario at Gtbank Ogba branch on the 11^th November 2014 around 9.pm or thereabout, I was actually heading home after the day hustle so I decided to take one or two bucks for house need. I actually passed through Zenith and Fidelity bank but I avoided using their ATM like plague because at that particular point in time, myself and my friend were only left with a single note of N1000 in the car so I was trying to be extra careful not to get my Gtbank Debit card trapped in other banks' ATM. To cut long story short,we confidently drove to Gtbank ATM points and proudly insert my card in one of the machines,the machine never prompted for a PIN but instead keeps displaying INSERT YOUR CARD message on the screen. I was dazed and couldn't think of a way out of the conundrum, I immediately asked a guy standing by the ATM if he had attempted to use the same machine that retracted my card and the guy answered in the affirmative. Initially I asked the guy why he didn't alert me to the danger of inserting my card in the same machine which held his but I felt after-all he does not owe me any duty of care as regards the use of the ATM. The saving grace was the N1000 in my friend's car as he had to part with it so I could sort things out with the bank the following morning. On 12^th November 2014 around 10am, I walked majestically to Gtbank Ogba Branch to pick-up the retracted bank card, I met with an Operation staff who happens to be a former colleague, I explained what happened the night before and he went to his desk to look for my card amongst the trapped cards the previous night, he came back to tell me my card wasn't there, this does not only comes to me as a rude shock but I was bewildered at the number of times I will be applying for a new card in a space of 6 weeks upon which a charge of N1,050 is deducted at every instance of re-issue. I see this as a daylight robbery and the trend should be reversed soonest. This to me is another way banks poach our little money systematically. If we do not raise this awareness now, banks will continually sucks away our deposits and government will turn blind eye to the larceny going on daily basis, some banks have device a means to deduct N65 at first withdrawal despite rule that says N65 be deducted after the third withdrawals on a third party ATM, please share your experience and lets all come together to tackle the monsters in our banking system. Feel free to openly discuss your experience as this is the only way our voices could be heard by the relevant authorities and regulators. An injustice to one is an injustice to all. Speak out now!

Hollalaycan

hollalaycan@gmail.com