Illegitimate charges, unauthorized debit of accounts top customer complaints to BoG
Unfair banking practices such as illegitimate charges and unauthorized debit of accounts top complaints made by customers against banks and specialised-deposit taking institutions (SDIs) to the Central Bank.
The finding by the Financial Stability Department of the Bank of Ghana (BoG) and contained in its 2021 Half Year Complaints Management Report, puts disagreements over interest computation and loan tenors extension complaints at second place.
Other complaints such as disputes and delays relating to updates of credit reports; inability to access matured investments; ATM and money transfer related issues; and mortgage related issues are ranked in third, fourth, fifth and sixth places respectively.
According to the Bank of Ghana, it received a total of 321 complaints directly from customers of banks, SDIs, and non-deposit taking financial institutions2 during the period under review, representing a decline of 27.87% compared with 445 complaints recorded for the same period in 2020.
The decline is largely attributable to the increased awareness of the general public to seek redress from the respective financial institution as a first level in the complaints resolution process.
The Bank of Ghana observed that during the review period, financial service providers resolved most of their customer complaints hence the decline in the number of complaints escalated to the Bank.
Out of the total number of complaints received from customers, 199 complaints were resolved within the required timelines representing a resolution rate of 61.99%. This represented a decline of 20.7% compared with 368 complaints resolved in the same period of 2020.
The decline was as a result of the complexity of the complaints and the availability of complainants for mediation processes. Some unresolved complaints also related to locked-up funds with distressed SDIs.
Complaints resolved during the period under review were related mainly to loan transactions including wrong computation of interest rates, wrongful application of penal charges, early loan repayment charges, and credit histories held by licensed credit bureaux. Others included unauthorised and unexplained debits on accounts and charge-back arising from unsuccessful ATM transactions.
Ghs 2 million compensation
The Bank of Ghana in the course of complaint resolution, facilitated the payment of monetary compensation or refunds to certain complainants whose claims were found to have had merit in line with the Bank of Ghana’s market conduct rules for its regulated entities.
Consequently, a total amount of GH¢396,000, £20,414.37 and USD$250,000.00 were paid by some regulated institutions as compensation or refunds to customers.
Central Bank abolishes “unfair fees and charges” demanded by banks, SDIs
The Bank of Ghana (BoG) last year directed all banks and Specialised Deposit-Taking Institutions (SDIs) in the country to desist from the collection of some fees and charges it describes as ‘unfair’ on the provision of its products and services.
In a notice issued on Friday, June 18, 2021, the Central Bank averred the imposition of the said fees and charges are inappropriate and detrimental to the financial inclusion agenda of government and the protection of customers’ interests.
The “unfair fees and charges” as noted by the Central Bank include;
- Credit Insurance Premium Overcharge
- Maintenance Fees on Savings Account
- Over the Counter (OTC) Withdrawal Charges
- Change of Ownership of Collateral Documents
- Application of Interest on Penal Charges
- Quotation of Monthly Interest Rates on Credit Facilities
- Third Party Deposit/Withdrawal Violations
