The House of Representatives has frowned at excess charges and illegal deductions by commercial Banks in breach of extant provision of the law.

Adopting a motion initiated by Mr Godwin Offiono at the plenary presided by Speaker Tajudeen Abass, the House mandated its Committee on Banking and Currency to probe into the issue and report to back within one month.

The House also mandated its committee on Legislative Compliance to ensure implementation of the outcome of the probe.

Offiono alleged that he was privy to information that some Banks and Financial Institutions in the polity indulge in the unethical practice of fleecing their customers through excess charges and unauthorised deductions.

The Lawmaker claimed that customers of different Commercial Banks had been groaning over excessive charges on their accounts,

He particularly claimed that that Financial Institutions known as Deposit Money Banks (DMBs) have reportedly introduced different deductions to increase their income, a development thal ts uncomfortable with customers;

He said he was aware that apart from Stamp Duty, bank customers also pay Value Added Tax (VAT) charges applicable on all VATable transactions in their account.

He further stated that Commercial Banks are charging outrageous interest on loans, and overdraft at a rate that is higher than the agreed rate in the offer letter as well as the arbitrary increase in the interest rate on loans and overdrafts and increase in the other fees without notifying and getting customers consent as stipulated in the Central Bank Chartered 4) Institute of Bankers of Nigena (CIBN) guideline.

He said it was unfortunate that the creation of charges not recognized in the Central Bank Guide to Bank charges has now become a common practice by Commercial Banks; just as he referred to the wrong application of maintenance fees, banks overcharging maintenance fees, the inclusion of transactions exempted from maintenance charge, loan liquidation and bank-induced transactions as some of the infractions. (The Guardian)