Reps Probe Banks over Faulty ATMs, Extortion

The House of Representatives and the Consumer Protection Council (CPC) have launched an investigation into allegations of indiscriminate seizure of customers’ money by malfunctioning Automated Teller Machines (ATMs).

The probe came after the House Committee on Justice headed by Ali Ahmad (PDP-Kwara) adopted a petition from bank customers who thought the development could imperil the Central Bank of Nigeria’s cashless economy policy if not checked.

The petition, according to Ahmad, states in detail how customers have been going through hard times in carrying out electronic transactions due to malfunctioning ATMs.

“The petitioner narrated how he went through due process by making formal complaint of reporting the non-dispensing of his money while his account was debited.

“He resorted to the petition and the House of Representatives’ intervention two months after the incident to curb further tactical manipulation of the banking system,” Ahmed said.

The lawmaker noted that withholding customers’ money for more than the stipulated period could not be condoned by parliament. The petition reads in part: “The banks would continue to indulge in this since there is no sanction to make banks responsible by ensuring that their ATMs are always in good condition.

“It may not be out of place that the trend might be deliberate, probably in a bid to use unsuspecting customer’s money to ease their (banks’) financial pressure.

“This is because if all the incidences are recorded and the funds aggregated by all the banks, there is no doubt that we will be talking about millions of naira being deliberately denied customers while the banks are feeding fat on it.

“These funds are held supposedly for 10 working days, which translates to at least two weeks and the owner of the fund is made to run from pillar to post and at the end of the day, no interest is added to the fund.

“Fidelity Bank and Diamond Bank and other banks in general should be investigated for extortion and if found guilty should be appropriately sanctioned.”

The petitioner insisted that the excuse of Internet failure could not hold because customers were charged appropriately by the banks for services rendered.

He added: “It must also be remembered that no customer dare default on repayment of loan for a day without sanction from the bank.

“It would not be out place to remind you that it was confirmed by the CBN that as at the first quarter of this year, banks in Nigeria have defrauded unsuspecting customers of N8.6bn. “The House has also opened investigation into tax collection, remittance and level of compliance with FIRS regulations by banks.

“Malfunctioning ATMs might just be another means of sustaining the frauds perpetrated by these banks.” The petition was referred to Committee on Public Petition while the CPC has since commenced its investigation.