FCCPC backs CBN’s 48-hour refund coverage for failed ATM transactions 

The Federal Competitors and Shopper Safety Fee (FCCPC) has expressed its assist for the Central Bank of Nigeria (CBN’s)new draft tips mandating banks to refund clients for failed Automated Teller Machine (ATM) transactions inside 48 hours.

The FCCPC’s Director of Company Affairs, Mr. Ondaje Ijagwu, introduced the Fee’s place on the coverage in an announcement launched on Monday.

In line with the Fee, the CBN coverage adopted its (FCCPC) Shopper Complaints Information Report launched in September, which highlighted persistent points round delayed or unresolved failed transactions.

Lengthy-awaited correction 

FCCPC’s Govt Vice Chairman, Mr. Tunji Bello, within the assertion, described the CBN’s proposal as a “well timed and long-awaited correction” to probably the most widespread complaints from bank clients.

He famous that even on the draft stage, the coverage displays a stronger alignment between regulatory our bodies working to guard shoppers.

“It’s in line with what the FCCPC has been advocating, given the variety of complaints we obtain about failed transactions.  

“We commend the CBN for this decisive step, which is able to ease the burden on shoppers and rebuild belief in monetary providers,” Bello mentioned. 

• In line with him, the proposed directive aligns with a number of provisions of the Federal Competitors and Shopper Safety Act (FCCPA) 2018, significantly Sections 17(g), (h), (l), (s), and (t), which emphasize honest dealings, elimination of unfair practices, and efficient shopper redress mechanisms.
• Bello added that well timed adoption of the CBN’s tips would promote accountability throughout the banking sector whereas boosting shopper confidence in Nigeria’s monetary system.
• He additionally revealed that the FCCPC would work carefully with the apex bank to ascertain monitoring frameworks that guarantee compliance and immediate redress when banks fail to satisfy the refund deadline.

“Nearer collaboration amongst regulators will result in quicker resolutions, forestall recurrences, and strengthen shopper confidence in Nigeria’s rising digital economic system,” he added. 

Backstory 

The CBN’s draft framework, launched on October 9, requires banks to supply on the spot refunds for failed ATM transactions carried out on their very own machines.

Below the draft framework, all on-us transactions, the place a customer makes use of their very own bank’s ATM, have to be reversed immediately.

The CBN famous that if on the spot reversal shouldn’t be potential because of technical hitches or system glitches, the transaction have to be manually corrected inside 24 hours.

• For not-on-us transactions, the place clients use one other bank’s ATM, the utmost refund window has been set at 48 hours.
• ATM acquirers are additionally required to place in place mechanisms that robotically provoke refunds with out ready for customer complaints or prompts from the issuing bank.
• As well as, they have to reconcile and refund all funds of their possession that belong to clients on account of failed or partial money disbursements.