FCCPC calls for redress amid online banking disruptions

The Federal Competition and Consumer Protection Commission (FCCPC) has expressed serious concerns about the persistent disruptions in online banking services throughout Nigeria, labeling these interruptions as a violation of customer rights.

In a statement issued on Tuesday, the Commission emphasized the detrimental effects these disruptions have had on millions of users, urging affected bank customers to seek redress for their grievances.

According to the FCCPC, the ongoing service outages have hindered customers’ ability to access funds, make payments, and conduct essential transactions, impacting both individuals and businesses significantly.

Under the Federal Competition and Consumer Protection Act (FCCPA) of 2018, consumers have specific rights designed to ensure fair and accountable service delivery.

One key provision guarantees the right to quality service, which requires all service providers, including banks, to uphold acceptable levels of functionality and reliability.

“When banks fail to maintain access to critical financial services, they are arguably not meeting this standard,” the FCCPC stated. “This failure can lead to significant financial hardship, loss of trust in the banking system, and broader economic repercussions.”

The Act also emphasizes consumers’ right to reasonable access to goods and services—a right severely compromised when technical failures obstruct customers’ access to their own funds.

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The FCCPC highlighted that, as Nigeria’s economy increasingly shifts towards a cashless model, online banking has transitioned from a convenience to a necessity.

Interruptions that prevent consumers from performing transactions or accessing essential funds not only create inconvenience but may also constitute a violation of their right

Furthermore, the consumer protection authority stressed that service providers are mandated by the FCCPA to maintain transparency and open communication with customers.

During service disruptions, it is crucial for banks to keep customers informed about the causes, scope, and expected duration of any issues. Unfortunately, many consumers have reported feeling left in the dark during these outages, exacerbating frustration and dissatisfaction.

The FCCPC pointed out that the FCCPA empowers consumers to seek redress for substandard services. “Bank customers can and should seek redress if they are adversely affected by inadequate service delivery.

The FCCPC is actively reviewing the situation to determine if consumers’ rights to redress are being upheld and if further action is required to enforce accountability,” the statement read.

In response to these disruptions, the FCCPC is collaborating with relevant regulatory authorities, financial institutions, and stakeholders to address the issues and ensure customer protection.

The Commission reassured affected bank customers that their concerns are being taken seriously, urging banks and financial institutions to promptly restore services, prioritize customer support, and communicate transparently about ongoing challenges.

Since the beginning of October, many customers of Zenith Bank and GTBank have experienced significant difficulties in executing transactions, primarily due to a core banking application switch implemented by the banks.

While this switch was intended to enhance services, the resulting instability has left many customers frustrated and dissatisfied with their banking experience.