The Federal Competition and Consumer Protection Commission (FCCPC) has publicly thrown it weight behind the Central Bank of Nigeria’s (CBN’s) new draft rule that mandates banks to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.
The FCCPC announced its position in a statement, calling the policy a “timely and long-awaited correction” to one of the most frequent sources of customer complaints.
Why the FCCPC is Supporting the Move
The FCCPC’s endorsement stems from its own September Consumer Complaints Data Report, which highlighted persistent delays and unresolved issues surrounding failed transactions.
- Rebuilding Trust: FCCPC Executive Vice Chairman, Mr. Tunji Bello, stated that the new policy will ease the financial burden on consumers and rebuild trust in the banking sector.
- Legal Alignment: Bello noted that the CBN’s proposal aligns with the FCCPA Act of 2018, which requires fair dealings, elimination of unfair practices, and effective consumer redress.
- Enforcement Commitment: The FCCPC has committed to working closely with the CBN to establish monitoring frameworks to ensure banks comply with the refund deadline and promote accountability across the financial system.
Quick Look at the CBN Policy
The CBN’s draft framework, released on October 9, sets out two key refund timelines:
- ‘On-Us’ Transactions (Customer’s own bank ATM): Must be reversed instantly. If instant reversal fails, it must be manually corrected within 24 hours.
- ‘Not-On-Us’ Transactions (Another bank’s ATM): The maximum refund window is set at 48 hours.
The rule further requires ATM operators to deploy systems that automatically initiate refunds without waiting for customer complaints, ensuring a faster, more reliable process.
