The Central Bank of Nigeria (CBN) has tasked banks in the country to ensure that the assets of customers are safeguarded, News About Nigeria reports.
CBN stated this in a document released on Thursday on its website titled “Revised Consumer Protection Regulations.”
It noted that aside from safeguarding customers’ assets, banks will be responsible for losses due to control breaches.
It maintained that banks must test products with consumers and modify products to reduce fraud and errors while implementing measures and authentication for transactions.
The document also noted that foreclosures should only be initiated as a last resort after other recovery options have failed.
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.
“Providers are not allowed to contact friends, employers, relatives, or neighbours for any information other than employment status, telephone numbers, or addresses. The only exception is if the person has guaranteed the loan or has given consent to be contacted.” It stated.
The Central Bank added that banks must protect consumer data privacy and confidentiality from unauthorised access and will be responsible for any acts or omissions in this regard.
It maintained that safeguarding the interests and ensuring greater protection of consumers in the evolving financial services landscape necessitated the review of the 2019 Consumer Protection Regulations.
These regulations, according to the Central Bank, are to ensure that the debt recovery process is transparent, courteous, and fair.
It noted that it will also provide customers with notices of outstanding obligations before beginning debt collection.