Don’t call customers’ relatives over debt recovery’- CBN warns financial service providers

  ‘Don’t call customers’ relatives over debt recovery’- CBN warns financial service providers

The Central Bank of Nigeria, CBN, has warned banks and other financial service providers to stop calling customers’ relatives or friends over debt recovery.

CBN disclosed this in a document released on Thursday on its official website titled “Revised Consumer Protection Regulations.”

The apex bank said financial service providers must respect data privacy and notify customers of outstanding obligations before commencing debt collection.

CBN noted that the essence of the document is to ensure financial institutions follow consumer protection principles, adding that financial service providers should ensure the debt recovery process is transparent, courteous, and fair.

“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.

“Providers are not allowed to contact friends, employers, relatives, or neighbours for information other than employment status, telephone numbers, or addresses. The only exception is if the person has guaranteed the loan or has consented to be contacted.

“Safeguarding the interests and ensuring greater protection of consumers in the evolving financial services landscape necessitated the review of the 2019 Consumer Protection Regulations,” CBN stated.

It will be recalled that the Federal Competition and Consumer Protection Commission, FCCPC, had delisted 18 digital money lending technology companies for invading customers’ privacy in the name of loan recovery.