Nigerian Banks Allegedly Employ New Tactics To Defraud Customers.

Lots of Nigerians have shared their banking experiences with Punch as to how Nigerian banks have derived several means of defrauding them of their hard earned money on a daily basis.

Amongst those that shared their experiences is Mr Francis A

gadaga and recounting his ordeal, he said he could have been a widower by now. On September 12, 2014, he rushed to an Automated Teller Machine point in his neighbourhood at Igando, a Lagos suburb, to pick some cash with which to take his ailing wife, Sandra, to the hospital. It was a tough period for the family. The N7, 850 left in his bank account would go a long way in dousing the situation if he could get access to the fund. After inserting his card into one of the ATMs and requesting to withdraw N7, 000, what followed almost left the father of two in tears.

“It was on a Sunday afternoon and we had just returned from church. when my wife started feeling feverish,” he began. “Her temperature became so high that we needed to quickly rush her to a hospital. I didn’t have any money on me at the time and so I hurried to the nearest ATM point to withdraw the little money I had in the account.

“However, to my utmost shock, I got a debit alert but did not get any money from the machine. I was so confused and tensed because I had never experienced such before and the kind of situation on ground then was a matter of life and death,” he said.

After waiting for a while to see if the cash would pop out of the machine, Agadaga left the place heartbroken and more tensed than he ever was. It took the kindness of few neighbours and friends to raise the money needed to save his wife’s life at a private clinic she was rushed to for treatment.

“It was my neighbours and friends who helped to raise N8, 000 with which I took her to the hospital where she was given injections and drugs. The next day, I went to my bank to complain and bank officials promised to reverse the debit after I had filled a form.

“I went back there after about a week later to find out why the money had not been reversed as promised. I was told their system had some technical problems, which they were trying to fix. I decided to give them some more time for the problem to be rectified. But after going there several times and being told the same thing, I left everything to God.

“Since that period till now, my N7, 000 has not been refunded. If not for my neighbours and friends who helped with some cash that day, maybe my wife could have died from that sickness,” the disgruntled young father told Punch.

Like Agadaga, Ejiro Dumuje, is still waiting for her money to be reverted back to her account four months after she was wrongly debited by an ATM in Abeokuta, the Ogun State capital. Dumuje had visited the ancient city to purchase bales of Adire fabric to resell in Edo and Delta states where she shuttles frequently when she suddenly ran out of cash. She headed for the nearest ATM point to collect some money. After paying her initial request of N40, 000, the young lady decided to pick additional N5, 000 from the machine. That was where things went wrong. A debit alert was sent to her phone but the machine never paid that money. Four months on, Dumuje is still waiting after several complaints at her bank.

“I have been to my bank more than three times to complain and ask why my money has not been refunded,” she said. “The people at the customer care just try to calm me by assuring that the case was still under investigation and that a refund would be effected as soon as possible. This is the fourth month and I have not seen my money. I am tired of going to complain. If they like, they can pay and if not, I leave them to God,” the visibly enraged lady said.

Bayo Odesina was in his office in Lagos in December 2013 when he got a debit alert of N250, 000 on his phone. It was an alert for an online transaction carried out through his MasterCard in Flushing, New York, United States of America. Agitated by the development, Odesina phoned his account officer to complain about the development and followed it up by contacting his lawyers to write the bank.

The financial institution replied and asked for a three-month period to properly investigate the matter. After three months, the bank sent a letter to Odesina’s home, accusing him of negligence and carelessness for the act. According to the bank, he had compromised the Personal Identification Number of his ATM card, thereby allowing fraudsters access to it in the process. Meanwile, it was only a few days after Odesina had approached his bank to block his ATM card after it went missing. The bank simply absolved itself of any blame in the act.

Odesina’s lawyers kept writing the bank threatening to take the matter to court if their client’s money was not refunded. In response, the bank requested for more time, apparently trying to frustrate the matter. One year passed and nothing changed. Odesina, a media practitioner, wrote the bank’s corporate affairs unit, this time, introducing himself as a journalist and highlighting how much damage a publication of the matter could do to the bank’s image. That same day, he was contacted by the head of the corporate affairs unit, who strongly assured him that his money would be refunded in a few days time after talking him out of publishing the matter in the newspaper where he worked. Three days later, an alert did come on his phone. His money had been refunded after about 13 months of intense struggle.

“Their plan was to make me forget about the money,” Odesina said. “They kept using all sorts of delay tactics just to frustrate me so I could give up on the money. If it were N5, 000, maybe I would have forgotten about it, but N250, 000 is not something I could just let go like that because it was a lot of money.

“My only saving grace was that I am a journalist. “When I realised that the bank was not going to pay my money back, I contacted the people at the corporate affairs unit and made them understand what damage a news of the entire drama could do to the image of their bank. That same day they called me and pleaded with me to give them a few days and that they would pay me back my money. Three days later, I got an alert of N250, 000 on my phone. That was one year and one month after the initial incident.

Three weeks ago, Amarachi Ejindu went to an ATM at the Akowonjo area of Lagos to withdraw some money. Though, her money was reversed back after receiving a debit alert initially for the transaction, the N65 ATM charge was not. It took a while before Ejindu noticed this and when she did, no reasonable explanation came to her mind. Why should she be charged for a transaction that was never completed or even occurred, she wondered. Why was the N65 not refunded along with the amount reversed? Who does that money go to? What does the CBN say about this? The questions kept running on her mind.

“I was really concerned about this that I had to call my bank’s customer care on the phone,” Ejindu opened. “It is a small amount but then I imagined why I should be charged for a transaction that never took place. It sounded like a rip off to me. I called the customer care people and they could not give a satisfactory explanation for this. They told me to make a formal complaint and that the matter would be looked into. I did that but they have yet to refund that money. Indeed, N65 could look like a small amount but think about how many customers would have experienced the same problem in a day and then see how much the banks could be making off people without their knowledge,” she said.

Photo credits - Royaltimes.net

Reportage - punch today.

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So what do you say on all these ALLEGED "scam" techniques by Nigerian banks to defraud their customers and what do you think can be done about it?

What about the enormous service charges by banks specifically the 65 naira bank charges for withdrawals made from other banks ATMs even on minute withdrawals? Shouldn't the charges only apply to valid withdrawals? Do you have any relative banking experiences to share? If yes , how did you go about it? Please share..