Bank customers to now pay for failed direct debit transactions

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According the Guide by , financial and non-financial institutions published by the Central Bank of Nigeria, the charge only apply transactions that fail due to the account being unfunded.

be required pay either one percent of the amount or N5,000 (whichever is higher) as the penal charge.

Direct debit is an arrangement made with a bank that allows a third party transfer money from a person’s account on agreed dates.

Stanbic IBTC notified of the penal charge through email on .

“In line with the Central Bank of Nigeria’s () Guide to , a failed direct debit transaction resulting from an unfunded account is liable to a charge of 1% of the transaction amount or N5,000 – the higher amount is applicable,” the email read.

“While this penal charge is only applicable if a customer’s account is insufficiently funded at the of the transaction, the qualifying amount shall be debited to account once is funded.

“We, therefore, wish to advise that you ensure your account is adequately funded at all times to facilitate a transaction, especially if you activate any form of direct debit instruction on your account.”

A screenshot from the guide

Some customers are already questioning the directive on social media.