The Lagos Chamber of Commerce and Industry (LCCI) has supported the House of Representatives’ call on the CBN to direct banks to upgrade their systems toward instant reversal of failed transactions without customers prompting it.
The President and Chairman of the Council of LCCI, Mr. Gabriel Idahosa, made the call in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
NAN reports that the House of Representatives called on CBN on Tuesday during plenary to direct banks to reverse customers’ funds within legal timelines, whether the customers lodged complaints or not.
The lawmakers also called on CBN to instruct banks to upgrade their systems to mitigate failed transactions and instantly reverse failed transactions without the customers asking.
Idahosa commended the lawmakers for intervening to address the issue, highlighting that two banks had already taken steps to upgrade their systems to overcome the challenge.
According to him, these banks have been able to return funds from failed transactions within minutes, setting a positive example for other banks to follow suit.
He said that LCCI supports the call that banks that have not upgraded their systems to achieve automatic reversal for failed transactions should do so as an obligation to their customers.
“So, as a customer, if I try to transfer money and it does not deliver, don’t keep the money; you need to return it to me immediately. Some banks already do that; within a few minutes, they credit your money into your account,” he said.
The LCCI boss explained that customers should not bear the burden of funds not being delivered, as it constitutes a breach of service and contract.
Idahosa emphasised that banks must promptly return undelivered funds to customers as soon as failures are detected.
He pointed out that failed transactions impact a significant number of customers, many of whom might not pursue complaints with bodies like the Federal Competition and Consumer Protection Commission (FCCPC), which could fight for their rights.
“Most customers don’t really have the time to pursue it, especially if the amount is too small to take their time,” he said.
Idahosa, therefore, urged the FCCPC to sanction erring banks.
“Firstly, the issue is that most customers do not know they have a right to complain to the commission.
“Then, two, if the complaint gets to the Federal Competition and Consumer Protection Commission, then we expect the council to take action immediately.
“So, it’s also one for customers to report to the council, and the council should be efficient in sanctioning the banks, or at least make them reverse the transfer very quickly, and if they delay, sanction them,” he said.
He said the council needed a large workforce to be able to deal with thousands of failed transfer issues. (NAN)
