CBN releases updated rules for consumer protection

Bisola David
Bisola David
CBN prepares tough financial sanction for banks

The Central Bank of Nigeria released an exposure document for revised consumer protection regulations yesterday.

The legislation was established, according to the central bank, because of the substantial changes in the financial sector that expose customers to new risks and challenges.

“The review of the 2019 Consumer Protection Regulations was necessary to safeguard the interests and ensure greater protection of consumers in the evolving financial services landscape,” the CBN said.

It continued, “The CBN hereby issues the revised Consumer Protection Regulations to give effect to the Principles contained in the Consumer Protection Framework for institutions licensed and/or regulated by the CBN, and reflect current realities of consumer protection practices, improve good consumer outcomes, and facilitate access to financial services.

“This is in accordance with the CBN’s stated purpose in Section 2(d) of the Central Bank of Nigeria Act, 2007 and in exercise of the powers granted by Section 30 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

“The goal is to foster a secure, reliable, and customer-friendly financial services environment by: Encouraging transparency and disclosure by promptly providing consumers with accurate and clear information; Safeguarding consumers from unethical and predatory practices that undermine confidence in the use of financial products and services.”

The CBN claimed that the objective was also to promote financial literacy and inclusiveness; guaranteeing access to free, equitable, prompt, transparent, and impartial complaint resolution methods; and ensuring that customers have control over their personal information and are notified before it is used for other reasons.

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