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Notify Customers Before Debt Recovery Moves, CBN Tells Banks
“Customers should be given the option of a private sale before foreclosure, which must be exercised within 30 days unless the customer has waived this right,”
The Central Bank of Nigeria has instructed regulated entities to provide customers with notices of outstanding obligations before beginning debt collection.
This is to ensure that the debt recovery process is transparent, courteous, and fair.
CBN stated this in a document released on Thursday on its website titled “Revised Consumer Protection Regulations.”
It noted that the essence of the document is to ensure financial institutions follow consumer protection principles.
The regulations outline consumer rights and aim for better outcomes and access to financial services.
The document states that foreclosures should only be initiated as a last resort after other recovery options have failed.
Foreclosure is the legal process in which the ownership shifts to the bank or lender if the debtor fails to pay the loan.
“Customers should be given the option of a private sale before foreclosure, which must be exercised within 30 days unless the customer has waived this right,” the document stated.
The apex bank further mandated that financial service providers must apply the net proceeds from foreclosures to the loan account and inform customers of the remaining balance.
The CBN added that banks must give customers a report on the collateral sale, stating process, expenses, and net proceeds noting that banks are responsible for the actions of debt collection agents.
The document outlines restrictions for loan providers in terms of contacting individuals related to a customer.
It stated, “Providers are not allowed to contact friends, employers, relatives, or neighbors for any information other than employment status, telephone numbers, or address. The only exception is if the person has guaranteed the loan or has given consent to be contacted.”
Additionally, banks must safeguard customers’ assets and are responsible for losses due to control breaches; test products with consumers and modify to reduce fraud/errors and implement measures and authentication for transactions.
FSPs are also mandated to install automated transaction monitoring, alert functions, and behavioural monitoring to detect and prevent fraud; customers must also be educated on fraud threats or scams.
The document added that the providers must communicate procedures for reporting suspicious, unauthorised, fraudulent, lost, or stolen payment instruments and/or authentication information to consumers periodically.
The apex bank requires financial institutions to offer secure and user-friendly interfaces for digital financial services to prevent errors and double transactions.
The CBN added that banks must protect consumer data privacy and confidentiality from unauthorised access and be responsible for any acts or omissions in this regard.
The providers are required to incorporate personal data protection into their product or system designs; they must obtain written consent from consumers to collect and process their personal data for specific purposes, and allow them to withdraw their consent at any time and are prohibited from sharing consumers’ personal data with third parties without their express consent, and must provide clear and simple “Opt-in” and “Opt-Out” options for data sharing.
“Safeguarding the interests and ensuring greater protection of consumers in the evolving financial services landscape necessitated the review of the 2019 Consumer Protection Regulations,” it added.
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Unity Bank, CashToken Rewards Promo Produces New Millionaire
A Unity Bank customer, Mr. Amadi Chinmenem Gift Chike, has emerged as the latest winner of One Million Naira in the ongoing Cash Rewards Promo by Unity Bank Plc and CashToken Rewards Africa.
CashToken Rewards Africa is a Cash-Reward-as-a-Service company that rewards customers for their patronage and loyalty.
Mr. Amadi, a customer from Unity Bank’s Aba Road Branch, Port Harcourt, Rivers State, won the cash prize after completing qualifying transactions on Unity Bank’s digital banking channels including Unifi, *7799#, and on his Unity Bank-issued Verve card. Through these transactions, he received CashTokens, which entered him into the weekly national consumer draw, where he was selected as the lucky winner of the N1 million prize.
The grand prize winner, Mr. Amadi is the second customer to claim the N1 million grand prize in the rewards promo, which commenced in November 2023. Since the launch, Unity Bank customers have collectively won over N6 million in cash rewards.
Unity Bank and CashToken Rewards promo offers guaranteed instant cash rewards and life-changing opportunities for loyal customers who transact on any of the Bank’s electronic payment platforms, including the Unifi mobile banking application and the *7799# USSD platform. Every card transaction earns customers CashTokens, which qualify them for the weekly national consumer draw, with prizes ranging from N5,000 to N100 million.
Presenting the cheque to the winner in Port Harcourt, Unity Bank’s Regional Manager for Port Harcourt/Uyo Region, Mr. Etop Ikpe, congratulated the winner and reiterated the Bank’s commitment to building a sustainable loyalty platform for customer engagement and satisfaction.
He said, “We are happy to see another one of our loyal customers win a substantial cash prize through the Unity Bank and CashToken Rewards Promo. This initiative aligns with our mission to reward customer loyalty while providing a seamless and rewarding banking experience. As we continue to innovate and enhance our digital banking platforms, we are committed to creating more opportunities for our customers to benefit from their relationship with Unity Bank.”
In his reaction, an elated Mr. Amadi said, “This is a reward for my steadfastness. I have been banking with Unity Bank for a long time and I am really happy to win the cash prize. I commend the bank for the initiative and Unity Bank has always come through in keeping their promises both in terms of service delivery and meeting expectations of customers.”
Also commenting on the development, Simi Adeoye, Chief Business Development Officer for CashToken Rewards Africa, added: “We are proud to partner with Unity Bank in bringing life-changing opportunities to their customers through our Cash-Reward-as-a-Service model. We aim to make every transaction meaningful by turning regular banking activities into chances for customers to win significant rewards. We congratulate Mr. Amadi on his win, and we look forward to creating more millionaires as the promo continues. Mr. Amadi just like other beneficiaries can easily cash out his win by dialling *6700#, following the prompt and transferring his wins directly to his Unity Bank account.”
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Breaking: Alimosho LG Vice Chairman Gets Appointment Letter To Take Over Office
The Vice Chairman of Alimosho Local Government Area, Mr. Akinpelu Johnson has officially received an appointment letter to take over from the suspended Chairman, Jelili Sulaimon.
The letter, dated 8th October, 2024, was signed by Kikelomo Bolarinwa, Permanent Secretary of the Ministry of Local Government, Chieftaincy Affairs and Rural Development.
Titled: ‘Re: Suspension of Mr. Sulaimon Jelili, Chairman, Alimosho Local Government Area Resolution of the House’, the appointment letter read: “I write to refer to the resolution of the House of Assembly in respect of the above
subject which states that Mr. Sulaimon Jelili has been suspended indefinitely from
Office as the Chairman, Alimosho Local Government in accordance with Section 24
(1,2,3,4) of the Local Government Administration Law (Amendment) Law, 2016. (Copy attached for ease of reference).
“In view of the above, you are to assume duty IMMEDIATELY as the Acting Chairman, Alimosho Local Government.”
Recall that the Lagos State House of Assembly on Monday suspended Jelili Sulaimon from office following various allegations by the lawmakers.
The lawmakers resolved at the sitting that Johnson should take over the running of the affairs of the council.
The lawmakers further instructed the management of the council, including the manager and treasurer, to recognise Johnson and accord him all the support to make him work effectively.
Meanwhile, four out of the seven councillors in the council have denounced the purported suspension of Johnson by their three colleagues.
In a press release signed by the four councillors including Deputy Leader Mojisola Fabusuyi Ayeni (Ward D), Saheed Adejoke (Ward C), Rasheed Semiu (Ward E), Elizabeth Fashina (Ward F), they commended the House of Assembly for intervening while urging stakeholders’ in the council to go about their activities peacefully.
Read the full statement below:
Illegal Suspension of Hon. Akinpelu Ibrahim Johnson,Vice Chairman Alimosho Local Government
We, the undersigned legislators from Alimosho Local Government, officially dissociate ourselves from the staged managed, and illegal suspension of Mr. Akinpelu Ibrahim Johnson, The Vice Chairman of Alimosho Local Government.
We condemn in totality the purported suspension of the Vice Chairman by minority legislators who acted on instructions of the validly suspended Chairman.
As representatives of our people from different wards in Alimosho, we remain committed to supporting the state and federal government’s efforts to improve the lives and well-being of our people, most especially at the grassroots.
We commend the State House of Assembly for their intervention in the mismanagement of the local government over the years. We urge all stakeholders to remain peaceful as there’s no cause for alarm.
The Renewed Hope (RH) Agenda of our Dear President, H.E Asiwaju Bola Tinubu GCFR, and Governor Babajide Sanwo-Olu’s THEMES + Agenda, deserve every attention and support at this critical stage of our state and nationhood and by extension at the local government.
We would like to emphasize that at no time was the Vice Chairman suspended hence our readiness to support him going forward with the administration of the Local Government.
As a man of the people, we have no doubt in our minds that Hon Akinpelu Johnson will deliver beyond the expectations.
We shall keep the public posted should there be any information of interest to the public.
Signed:
1. Councillor. Mojisola Fabusuyi Ayeni (Ward D), Alimosho LGA, Deputy Leader
2. Councillor Saheed Adejoke (Ward C), Alimosho LGA, Chief Whip
3. Councillor Rasheed Semiu (Ward E), Alimosho LGA, Member.
4. Councillor Elizabeth Fashina (Ward F), Alimosho LGA, member.
News
Court Returns Abure As Labour Party National Chairman
A Federal High Court in Abuja on Tuesday returned Julius Abure as the national chairman of the Labour Party, LP.
The court declared the 2024 Labour Party national convention held in Nnewi, which re-elected Abure, is valid, stating that the convention was in line with all laid down laws in Nigeria.
This was contained in a statement issued on Tuesday by the party’s National Publicity Secretary, Obiora Ifoh.
According to the statement, Justice Emeka Nwite while delivering the judgement, compelled the Independent National Electoral Commission, INEC, to grant due recognition and all privileges to the Labour Party’s National Working Committee as led by Abure.
JomogNews reports that INEC had announced that it did not recognise Abure as the National Chairman of the Labour Party.
The Commission argued that the Abure-led LP leadership was invalid, stating that the March 2024 National Convention that re-elected Abure as chairman violated both the Nigerian Constitution and the Electoral Act.
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