1. GENERAL PROVISIONS
- Contracts, offer letters, statements of account, notices and other documents provided to consumers shall be written in CLEAR, LEGIBLE and SIMPLE English language. It must not be MISLEADING or DECEPTIVE.
*The implication is that if the customer complain of not understanding the doc signed..
The following disclosure requirements shall be on ALL advertisements and promotional materials:
- The content of advertisements shall be factual and unambiguous, and shall not be offensive, misleading, deceptive, injurious, or exaggerate benefits of the product
- Details of the cost of a product or services, including all fees and other charges shall be clearly disclosed.
*What this means is that instead of advertising a loan at say 5% per month, the financial institution must advertise it on an annual basis which is 60%.
- Disclose to consumers all terms and conditions of a product or service on offer, as well as the features, inherent risks, benefits, fees and other associated charges. Also disclose possibility of variation in rates or FX rate.
* This means that within 3 working days the customer can walk away from a signed agreement without charge
Failure to comply with the provisions of these Guidelines shall attract regulatory sanctions provided for by the CBN Act, the BOFIA, other laws and regulations. This includes fines or the withdrawal of the financial institutions licence.
You can download the guidelines here to read the details.