Bank disputes in Nigeria can never be avoided as far human interaction is concerned. Bank transactions in Nigeria generally happen smoothly and with no issues, however there are times when the bank fails in its service to customers, or there is some kind of issue which they need sorted. Due to the nature of the service the bank provides to customers when dealing with their money, when things go wrong, it can indeed be an extremely frustrating and stressful time thus creating a bank dispute.
Bank disputes and issues refer to disagreements or conflicts that arise between a bank and its customers or between banks themselves.
How Do Bank Disputes In Nigeria Occur?
Bank disputes occur in innumerable ways. Some of them are elucidly higlighted down below:
Unauthorized Transactions
Customers may dispute transactions they did not authorize, such as fraudulent charges on their accounts.
Billing Errors
Discrepancies in account statements or charges that are incorrect can lead to disputes between customers and banks.
Service Fees
Customers might contest fees they believe were charged in error or were not disclosed properly.
Loan Disputes
Issues related to loan terms, interest rates, or payment amounts can result in conflicts between borrowers and lenders.
Account Management
Disputes can arise over issues related to account access, overdraft policies, or account closures.
Credit Report Issues
Errors in credit reporting or disputes regarding credit scores can also involve banks and financial institutions.
Customer Service Complaints
Dissatisfaction with the service provided by bank representatives can lead to conflicts.
These are to mention but a few. Most banks have put robust customer complaint/handling systems in place, and there is a structure in place for customers to channel any grievances, however most bank customers are not aware of this. Some of these customers end up waiving their rights as consumers and thus leading to either loss of money or other valuable assets.
How Can Bank Disputes In Nigeria Be Resolved?
This article aims at addressing the various ways by which a customer or other banks can comfortably resolve issues and disputes arising from bank transactions.
Contact the Bank Directly:
This is the first step which a customer must take before any other thing. He can contact the bank through the quickest channels available. In this case, he can either call them on the customer care numbers available, or even contact them on social media (Facebook, Twitter etc.). This should always be step one, because most times the information needed can be clarified quickly and relatively painlessly. However, whatever communication channel one chooses, he must make sure he takes note of the details of the communication e.g. if a phone call, take down details of when you called, who you spoke to (the adviser’s name), what you said, and the response you received. All phone calls are recorded so this can easily be reviewed if there are issues later.
Write a Formal Complaint:
If the issue remains unresolved, write a formal complaint letter to the bank. Include details about the issue, any relevant account information, and a request for resolution.
Consumer Protection Agencies:
If the issue still remains unresolved, the customer or bank can escalate the issue to the Consumer Protection Council (CPC) or the Nigeria Deposit Insurance Corporation (NDIC), which handle complaints against banks and financial institutions. The Federal Competition and Consumer Protection Commission is an available outlet for customers and other banks to air their grievances. They may be able to assist them in putting pressure on the bank to resolve the complaint.
Central Bank of Nigeria (CBN):
If the bank fails to resolve the issue, the customer or bank can lodge a complaint with the CBN. The CBN has a dedicated Consumer Protection Department that handles such grievances. If the issue remains unresolved, then he would need to commence the official customer complaint process. All banks (and other financial institutions) are regulated by the Central Bank of Nigeria (CBN). The customer is to send a complaint letter to the Bank. The CBN states that the banks must provide email addresses for complaints, so he may initially send the complaint by email, and then take a copy of the complaint to the bank branch, to ensure that the bank receives the complaint letter. The detail of the complaint is where he must capture all the relevant information about his complaint. It is the most important part of the process, and therefore he needs to ensure he captures the right information.
The CBN does not provide any timelines for dealing with the complaints, but this should be done within a reasonable time. However, if the CBN fails to resolve the complaint, a customer or bank have the relative the right to take the case to court on the pre-requisite that all the pre-court resolution options are exhausted firstly.
Alternative Dispute Resolution (ADR):
Consider using ADR mechanisms like mediation or arbitration, which can be faster and less formal than going to court. It is a practical conflict resolution method embraced by parties involved in modern trade.
In Nigeria however, banks seem reluctant to participate in arbitration. Due to bank’s special status as lending institutions, disagreements about the bank-customer relationship will inevitably come up at some point in the future. These disagreements may result from the bank trying to collect loans from a customer who has defaulted or from the customer contesting the amount of money owed to the bank to offset its obligation. It is an established fact that banks are currently involved in many legal proceedings before the courts in an effort to resolve conflicts with their clients most especially when it comes to loans that are not performing. This is due to one of the perceived reasons the criteria for arbitrary award is the logic used by the tribunal to reach an arbitral judgment is not of the desired caliber or standard, a bank may not appreciate it.
This notion could develop as a result of uncertainty over the arbitral tribunal’s knowledge of the arbitration’s subject matter. However, it is submitted and according to the provisions of the Arbitration and Mediation Act 2023, stringent rules have been put in place when it comes to the appointment of mediators and arbitrators. One of the criteria is that they must be well experienced in the field of the particular subject matter before him (or tribunal if they are more than one). The banks or customers have the right to elect whomever to arbitrate on the particular subject matter taking cognizance of the already established criteria. This forms a very strong foundation to build a particular claim and offer a befitting award.
Asides the fact that the arbitrators are appointed while undertaking certain conditions, the arbitral hearings are highly confidential making sure that the arbitration decision is not open to public inspection. This creates an avenue for confidential resolution of a customer dispute without making other customers aware of the resolution and preventing them from feeling emboldened to pursue similar complaints.
Furthermore, it is undisputed that arbitration proceedings enjoy limited time frame than court litigation not minding the fact that some time may be required to form the arbitral panel and create the arbitration panel.
In addition, an arbitral award is legally binding and enforceable. Given that a prominent number of non-performing loans are currently the subject of legal proceedings, and that some of these cases have been pending before the courts for a very long time, it is submitted that arbitration will be the way forward if banks are eager to recover their money from debtor-customers, so also respective banks within a reasonable amount of time.
Legal Action:
This final step should only be taken as a last resort, because taking a case to court is a fairly involved process and also potentially expensive. You should only take this step if the amount involved is considerable, and the decision to not resolve your complaint by the bank and the CBN is manifestly unjust.
As a last resort, you may seek legal counsel If the dispute is complex or involves significant amounts of money, consulting with a lawyer who specializes in banking law may be beneficial to file a lawsuit against the bank in a competent court. Ensure you have all documentation and records of communication to support your case. When filing an action against a bank regarding issues or disputes, it’s essential to gather and present relevant documents to support your case. Here are some key documents you may need:
Account Statements:
Recent and past statements showing transactions related to the dispute.
Correspondence Records:
Any emails, letters, or communication with the bank regarding the issue. This includes complaints, responses, and any notes from phone conversations.
Contracts and Agreements:
Copies of any contracts, account agreements, or terms and conditions that pertain to the account or service in question.
Transaction Records:
Receipts, confirmations, or records of any specific transactions that are part of the dispute.
Identification Documents:
Personal identification, such as a driver’s license or passport, to verify your identity.
Proof of Compliance:
Evidence that you have complied with the bank’s procedures for resolving disputes, such as complaint forms or documentation of attempts to resolve the issue.
Legal Notices:
Any legal notices or documents you may have received from the bank regarding the matter.
Witness Statements:
If applicable, statements from witnesses who can support your claims.
Expert Opinions:
If relevant, expert opinions or reports that can substantiate your case.
Photos or Evidence:
Any photographs or other evidence that support your claim.
By following these steps, individuals can effectively address and resolve banking issues in Nigeria and have their rights protected.
Contact Us
For banking dispute resolution in Nigeria, contact Chaman Law Firm today. Our offices are conveniently located in Lagos, FCT Abuja, Ogun State, and the UK. We are readily available to assist you with your legal needs. Whether you require consultation, representation, or ongoing legal support, Chaman Law Firm is your trusted partner in navigating immigration law in Nigeria.
Call us at 08065553671 or email us at info@chamanlawfirm.com to schedule a consultation. Chaman Law Firm: Your Trusted Legal Partner in resolving bank disputes in Nigeria.
By choosing Chaman Law Firm, you are selecting a team of dedicated professionals committed to providing exceptional help in the resolution of bank disputes in Nigeria tailored to your unique needs. Let us be your advocate and guide in the complex world of resolving bank disputes, ensuring your interests are protected and your goals are achieved. Contact Us for premier help in:
- resolution of bank disputes in Nigeria
- forming contracts and agreements
- providing expert opinions
- and so many other related bank disputes
Contact Chaman Law Firm today. Our offices are conveniently located in Lagos, FCT Abuja, Ogun State, and the UK. We are readily available to assist you with your legal needs. Whether you require consultation, representation, or ongoing legal support, Chaman Law Firm is your trusted partner in providing help in resolution of bank disputes in Nigeria.
Call us at 08065553671 or email us at info@chamanlawfirm.com to schedule a consultation.
Chaman Law Firm: Your Trusted Legal Partner in bank dispute resolution in Nigeria.