Home Banking, Finance & Investment BoG to sanction banks that flout new directives on service charges

BoG to sanction banks that flout new directives on service charges

by Radarr Africa
BoG to sanction banks that flout new directives on service charges

Dr Akwasi Atuahene, a bank consultant, has urged the Bank of Ghana to take action against financial institutions that fail to implement its new directives to stop deducting service charges on customers accounts. 

The Central Bank in a statement on Friday, June 18, 2021, directed banks and Specialized Deposit-Taking institutions to desist from implementing different service charges, and to desists from engaging in unethical practises that are against the banking industry. 

The service charges, and practices which are identified by the central bank as unfair include, Credit Insurance Premium Overcharges, Maintenance Fees on Savings Account, among others, Over the Counter (OTC) Withdrawal Charges as well as the requirement by some banks for borrowers to make them part owners in some assets they present for use as collateral for loans.

According to Citi News, Dr Atuahene urged the various banks to adhere to the directive as customers had been ripped off for a very long time.

“Some customers are ignorant, and they [banks] know we cannot report them to anyone and even if you report, it is going to take a long time. They were debiting customers for GHS5 or GHS10, and they made huge profits. Meanwhile, the person has made deposits on their accounts, and you are using the same money to trade. So the banks are not being fair to their customers. I think the Bank of Ghana is only telling them now that they have to be fair to customers. It will be good for customers. The banks were milking people.”

Dr Atuahene stated the directive by the Bank of Ghana “is a step in the right direction and must be enforced to the letter. And if people report any deviation to them, they should take action against any such bank.”

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