Is Your Bank Charging You Excessively?

It is no longer news that Banks rips-off their customers, but the rate at which they do it these days is becoming alarming. Banks capitalise on the ignorance of their customers as regards banking rules and regulation to rob them of their money. This situation is very dangerous when the bank account of the holder is running on steady overdraft or loan facility. Below are some common ways at which Banks rip-off their customers.


Ways Banks Rip-off Their Customers

  • COT  is expected to be charged only on valid withdrawals. Bank overcharge COT by inclusion of transactions exempted from COT charges like returned cheques, loan liquidation and other transaction that has to do with liquidation, inclusion of  COT Shortfall in the loan agreement signed by their customers-the implication of this is that when a customer is projected to make a particular turnover per month and does  not, COT shall be applied on the shortfall. This charges is illegal because COT is chargeable on withdrawals only.

  • Outrageous ATM charges.

  • Loan and overdraft interest above the interest margin allowed above the Minimum Rediscount Rate (MRR) or Monetary Policy Rate (MPR) – This is porpularly called wide INTEREST RATE SPREAD. Most bank violates this regulation.

  • Backdating value dates of Debit transactions so as to make withdrawals to have value earlier than the transaction date, the effect is to make account holder suffer overdraft interest on backdated days.

  • Excess overdraft interest by applying dual rates for overdraft charges. One the agreed rate while the second which is higher applied to Excess overdraft (amount overdrawn in excess of overdraft limit). Note, withdrawing beyond overdraft limit does not give bank the right to apply higher rates in form of dual rates. To compound issues, some bank apply the excess overdraft rate on both the actual overdraft amount and the excess overdraft.

  • Charging VAT on interest.  VAT is excepted on interest.

  • Hidden loan charges by calculating interest with rate outside monetary regulations and agreed rates.

  • Using unauthorised rates for miscellaneous fees. That is, charges outside CBN’s guide (Bankers Tarrifs issued by the Bankers Committee from time to time).

  • Charges for SMS notifications are suppose to be free when compare to world class best practice.

Our Solution

The solution to the above rip-off is regular scrutiny of the bank statement and obtain proof of legality of bank charges. Customers should also question miscellaneous charges, such as:

*  Returned cheques      * Renegotiation fee      * Above-the-limit charges
*  Facility approval     * Management fee           * Commission on cheques
*  Maintenance fee        * COT Shortfall fee         * Transfer fee

We at AP Professional Services offer our expertise in helping client to ensure Bank do not rip you off and where banks have already overcharge you, we assist in the recovery process. We have developed an EXCEL template for easy discovery of any overcharges and willing to share the template with you and offer training for its usage.

Our Solution comes in three (3) different approaches as detailed below.

(1) Do it Yourself with our enhanced tailored made capacity training.

By this approach, you will be equipped with the knowledge and technical know-how needed to investigate for excess bank charges by yourself. You will be thought the basic concepts and principles.

At your instance, our training can also include a Walk-through guide on how to use our dedicated EXCEL BANK CHARGES TEMPLATE if you decided to buy the template

The training is available both physically in our offices and also via remote app depending on your choice.

You can also opt for self training by subscribing to download illustration videos and other materials suitable for your needs.

(2) Investigate for excess bank charges on your behalf under a consultancy service with success based percentage fees. This means, no pay where bank charges claim is not ascertained.

This approach requires valuable time needed to scrutinize the bank statements, therefore we only commit to work with our clients using this approach by taking a calculated risk of not getting paid unless excess bank charges claim is recovered.

In order to minimize the risk of spending time and not getting paid at end of the day, this approach will only be deployed for clients with high volume of transactions PLUS any or combination of the following in existence:

(a) Loan transactions
(b) Overdraft transactions
(c) Call or fixed Deposits
(d) Letter of credits

(3) Investigate for excess bank charges on your behalf under a consultancy service with agreed fixed fees.

This approach is designed to be suitable where solution 1 is not opted for and where solution 2 is not suitable for us.

This approach works on the understanding that our work is basically to ascertain any Excess Charges Claimable under an agreed fee at inception. Separate fees will also be agreed where we are to be involved in the recovery process.

Excess Bank Charges Recovery Service

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